As Bitcoin’s dominance in the cryptocurrency (virtual currency) market weakens, the surge in altcoins (cryptocurrencies other than Bitcoin) could be a signal of the collapse of the cryptocurrency bubble, Bloomberg News reported on the 10th (local time). .
As of this day, the total cryptocurrency market cap is about 2.6 trillion dollars. Of these, Bitcoin is about 1 trillion dollars, which accounts for 43%. This is significantly lower than the 70% of 2017, when the cryptocurrency was rising.
This is due to the recent advancement of altcoins. Ethereum is hitting record highs every day, surpassing $4,000. Dogecoin has also been plummeting in recent years, but it still rose more than 10,000% compared to the beginning of the year.
Accordingly, Ethereum is firmly maintaining the position of the second-largest cryptocurrency in the market cap and Dogecoin as the fourth-largest cryptocurrency in the market cap.
In contrast, Bitcoin has recently been flat. Accordingly, the market capitalization of bitcoin in all cryptocurrencies is falling day after day.
Recently, cryptocurrency investors are buying altcoins, seeing that Bitcoin has risen enough. Accordingly, Bitcoin is being alienated from the cryptocurrency rally.
Experts say that it is a typical bubble that unverified altcoins, not already verified bitcoins, are soaring.
JP Morgan’s cryptocurrency team warned in a recent report that this could be a sign of a bubble burst.
The JP Morgan cryptocurrency team said that historically, when Bitcoin’s share of the entire cryptocurrency market drops to 40%, other cryptocurrencies will plummet. The bubble bursts. Currently, Bitcoin accounts for 43% of the total cryptocurrency market. Up to 40% is short.
Meanwhile, after peaking at $64,870 in April, bitcoin has recently remained flat and is trading mainly in the range of $56,000 to $57,000.
