So far, the crowning cryptocurrency Bitcoin has evidently influenced the trading prices of altcoins, but as per the latest study conducted by data provider Indexica, Bitcoin is no longer a driving force in the crypto market.
The study got reported by Bloomberg media last week (on October 11, 2019), adding various comments on Bitcoin, which were pulled out from the industry leaders, including JPMorgan Chase & Co. While Bitcoin gained enormous momentum, in fact, more than doubled in the first half of 2019, its performance in the second half of 2019 isn’t entirely appealing.
What Drives Bitcoin Price Up and Down?
Typically, whenever Bitcoin (as per the historical records) surges to a new high, it showers a quick gain to other cryptocurrencies in market but according to the Indexica, the alternative data provider which has researched data from Aug 1 – Oct 1, Bitcoin is no longer influencing the price of other market players despite holding the high dominance.
An exciting part that Indexica researched was, Bitcoin’s fall in the second half of 2019 is not majorly concerned with the currency itself; instead, it was crushed by the “growing cryptocurrency ecosystem.”
They emphasized that the price movements of Bitcoin are connected with the competing digital currencies and new blockchain technologies. More so, it mentioned the partnership between Mastercard and R3 that seeks to develop a new blockchain payment system. As per Indexica, this partnership believed to be the driving force behind Bitcoin’s price movement.
How far this study believed to be true is still a matter of concern – hence, we suggest you take it with a pinch of salt. This is because; Bitcoin still holds the highest dominance and still stands as the world’s largest cryptocurrency. Having said that, the CEO of Indexica, Zak Selbert noted about “Bitcoin’s sensitivity,” adding;
Now that Bitcoin is a big kid, anything can make it move, just like anything can make gold or a G-10 currency move. Bitcoin is part of the financial landscape in a very intertwined and mature way.
At the press time, Bitcoin is valued at $8368 against USD, which is an appreciation in its value by 0.15 percent within the past 24 Hrs. Moreover, Bitcoin currently marks the dominance of 66.4 percent, holding the market capitalization of $150,574,078,255.
Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.