Bitcoin’s dominance is hovering below 65%, but it is likely to fall, says Pantera Capital, as more money continues to flow into altcoins
By 2020 Bitcoin should be surpassed by altcoins, especially as banks continue to print money, according to a survey by the cryptocurrency investment firm Pantera Capital.
In your Blockchain Letter of June published Wednesday, the hedge fund said that while a 2017-sized altcoin bull run is unlikely to happen again, we are in the middle of a bull market cycle – and will continue on one until next year.
– Pantera Capital (@PanteraCapital) June 24, 2020
Bitcoin is already being overtaken by Ethereum and other cryptocurrencies in 2020, and that trend will continue, the investment firm said.
Currently, the value of Bitcoin has increased 34% this year – but Ethereum has appreciated 88%, while 0x and Augur have appreciated 98% and 97%, respectively. Ripple’s XRP, still the third largest cryptocurrency by market cap, fell 2% this year.
“During bullish cryptocurrency markets, we expect assets outside Bitcoin (alt-coins or alts) to outperform,” said the report. “Overall, they are stronger beta assets and people tend to buy them after buying Bitcoin, which is usually their first purchase of cryptocurrency assets.”
Bitcoin’s share of the total cryptocurrency market – “Bitcoin Domain” – is currently hovering below 65%, but is likely to fall, Pantera said. This is because other cryptocurrencies will start to gain more traction.
The growing interest in Bitcoin and other cryptocurrencies is a reaction from investors frightened by the excessive printing of money by central banks, the report said.
“Bitcoin was created in reaction to the previous printing of money,” explained Pantera. “Bitcoin’s price has risen exponentially during that 10-year period from what was then an unprecedented impression of money. What is happening in the world today is an order of magnitude greater. “
“The cash tsunami has raised the price of cryptocurrencies in general. We use Bitcoin as a proxy for the market, because it is better known. “
Pantera added that next year, when the bull market matures, altcoins are expected to gain even more significant market share compared to Bitcoin.
“It’s really more than just Bitcoin,” concluded Pantera.