Bitcoin was able to get to near $7,500 level currently. And this is good news considering that there was a time last month wherein Bitcoin was only selling below $6,000. However, altcoins are struggling. US SEC only considered Bitcoin and Ethereum as cryptocurrencies that aren’t securities. And the implication of that is many other cryptocurrencies are in a limbo.
Bitcoin is currently the dominant crypto in the entire market with a 45{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} market share. This has been the highest since April. Part of the reason is the nod given by SEC that allowed a Bitcoin ETF. And it only means that it simply attracts more institutional investors into the picture.
Altcoins Are Down
Ripple and Tron are down 88{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} from their all-time high. Cardano, on the other hand, is down by 87{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} while Dash is down by 85{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} from its peak. And it is clear that optimism from last January has subsided. There are even issues faced by Ripple wherein it is accused of being a security. And because of this, Ripple has received three lawsuits.
One of the reasons why altcoins are currently suffering can be attributed to novice investors who simply invested in these altcoins looking to gain a quick profit. However, once the bear market kicked in, many of which decided that they don’t really have the necessary risk tolerance to stick with their altcoin of choice.
Dead Coins
There are also many crypto projects that have been considered dead. There are a lot of tokens today that haven’t found their way towards living up to their promise. There are many ICOs that have been launched without a concrete plan or even a ready product. And unfortunately, many of which are actually scams. According to one study, 1 out of 5 ICOs is a scam.
The website deadcoins.com tracks down the cryptocurrencies that have been abandoned, scams, and those that have faced different issues. These problems could have stemmed from developers abandoning the project or someone who simply took the money and ran away with it.
If you ask Max Kortakul who is the founder of social crypto trading platform Carboneum, he says that “while there is uncertainty over the future of Bitcoin, the fact remains that there is a large amount of wealth tied to the currency; therefore, investors are attracted to it. Its value is a low way from the $20,000 mark we saw late last year, but even if the price is to settle at $6,000 to $7,000 long-term, it remains an exceptionally high price for what it is a brand new form of asset”. He also pointed out that there are already 800 cryptos considered dead.
Bullish Prediction on Bitcoin
There are prominent individuals who are quite bullish when it comes to the future of Bitcoin. Predictions for the end of the year range from $22,000 to $50,000. Though there is a discrepancy in different predictions, there are those who believe that Bitcoin is actually going to surpass the last all-time high last December 2017.
There are those thinking about the possibility that institutional investors are actually going to participate in the market any time soon now that there is more of regulatory clarity in the industry.
