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July 11, 2020
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Altcoin Bitcoin Finance

Here is Why Bitcoin Crushing Altcoins in 2019 Delaying The Alts Season.

Investment in altcoins continues to decline and be at high risk the fact that Bitcoin continues to rise in value and as well as Bitcoin dominance breaking new highs. As we all expected unlike the 2017 bull run, altcoins had its bull season as Bitcoin broke new highs. Altcoins are not gearing up as we expected to make a lot of people a little disappointing as to whether altcoins are dead or not.

A lot of factors are affecting altcoins in 2019 and I am about to walk you through some of them. It risks investors’ capital and makes even some people doubt what could cause this major decline and delay the alts season as a matter of fact.

It looks like investors are getting smarter in 2019 as to where they want to put their capital for investment in crypto. As investors get smarter, they look for an asset class in the crypto space that has more liquidity, some sort of intrinsic value, and one that looks safer for a store of value with bigger trade volumes. And as you can see, it is no other crypto asset than Bitcoin. If you have been in the crypto market for some time you will agree with me that whenever we get whether a major or a minor pullback in the market or Bitcoin drops in value, the damage it causes to its alternative coins sometimes could be twice or thrice the loss in Bitcoin or maybe more, even ten times the drop in Bitcoin is probable. As this longest bear market comes to an end, those who stayed to learn have gotten smarter to understand that Bitcoin is a store of value than altcoins and a way of adding up to their knowledge they now choose Bitcoin over altcoins and that is one major setback for altcoins as the name goes alternative to Bitcoin but people have a choice now.

Secondly, don’t be disappointed that 2019 is unlike in 2017. As a matter of fact, in 2017 we had tons of ICOs (Initial Coin Offering) that brought a lot of money into the market and it brought more liquidity into altcoins as people purchase Bitcoin and Ethereum mostly to participate in ICOs. The fact that it brought huge liquidity in the alts market, tons of people got scammed too and it could not continue like that. Though I believe we are never going to get such an opportunity like ICOs bringing money into the market like in 2017 because, people are smarter now, which is a major factor why alts are struggling, the new monies that come in the market are from different smarter sources which mostly, the larger parts are allocated to Bitcoin.

Likewise, one major setback for altcoins is the fact that Bitcoin dominance continues to break new highs. In 2017 as we had more money flowing from ICOs and alts, though Bitcoin dominance grew up to 80% plus but it gradually began falling before the alts season started. As at now, that it is breaking new highs one could hardly tell the fate of altcoins as to when we will see the bull season. Bitcoin dominance as at now breaks new highs of the year 2019 and stands around 65.30% now.

In conclusion to all of this, I had hoped the alts season comes earlier but is unfortunate as you can see sometimes when Bitcoin goes up in value in USD, alts go down in USD but gain value in Bitcoin basically in satoshi, as it based on more of Bitcoin and in satoshi; I still hope the alts season will come. Just like it happened to Bitcoin when it came below $3000, people lost hope and thought it was coming to zero, funny thing, that was the bottom. Though TA speaking, some alts look extremely bad in the chart but I am beginning to think the bounce could be soon as people turn their backs and lose hope so could some magic happen. Having said that, it would not be a bad idea to hedge altcoins now or maybe possibly tether it into USD as everything now looks uncertain as to whether we bounce back to uptrend soon or not. This is not investment advice, just my opinion. Regardless, some altcoins are performing just nicely as we expected and I am proud of that because not all alts are declining in price and value, some are actually doing just fine like there is no Bitcoin influence.

I Am CryptoRas.

Featured Photo by Austin Distel on Unsplash

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