Altcoins reached their peak since the latest developments regarding Bitcoin. BTC, holding 55 % of the market, has experienced a radical decrease in prices during the past few days.
Before the BTC fall, the ranking was as follows: BTC, ETH, Binance coin, Dogecoin, Cardano, Tether, and XRP. BTC kept most of the market share occupied. The dominance of ETH was approximately around 20 % of the market. After Bitcoin crash, the value of altcoins showed an important increase.
Considering the change for BTC, analysts take the announcement of Musk into account. Musk, the founder of Tesla, expressed that Tesla will no longer accept Bitcoin Payments. Musk implied the possibility of Tesla withdrawing from the Bitcoin market. Even though Tesla did not sell any of its bitcoins yet, Musk clarified that they search for a currency with minor environmental damage.
For some others, the recent decline of BTC is not necessarily linked to Musk but rather a trend. This trend which is called the alt season has been observed for several months.
According to Chad Steinglass, Head of Trading at CrossTower, BTC was not decisive concerning their direction for weeks which has converted to an opportunity for ETH and other coins. Indeed, Bitcoin’s success has been praised throughout the year. At the same time, the performance of Bitcoin was lesser compared to ETH and other coins.
Nevertheless, as Steinglass mentioned, Bitcoin managed to consolidate by April, encouraging companies to include BTC as a currency reserve. On the other hand, earning reports did not speak of BTC. Also, companies like Tesla cut what they hold.
It is worth noting that Tesla’s inclusion of Bitcoin was expected to inspire other companies to enter crypto markets. However, the major companies did not enter the market at the awaited degree.
Furthermore, Tesla stepped back from the crypto market, signifying that expectations may not be met soon. It is to say; large companies might not be interested in crypto markets. Despite the exploration of Tesla for other currencies, there has not been any concrete step taken.
See Also: Future of CryptocurrenciesShare this article