Bitcoin Dominance Rates Should Drop For Altcoins to Strengthen
News, August 6, 2019
Investors are in the search for high-potential Altcoins, considering the practical long-term benefits these coins deliver to the investor. Finding the right Altcoins from the ranges of ETH through TCAT tokens is indeed a colossal task. However, there are no other thoughts on that the ROI on Bitcoin is higher than Altcoins. While the regulatory pressure is influencing the price of all the coins, the overall situation is in favour of the Bitcoin.
Alex Kruger tweeted: “Most Alts have become asymmetric bets with an unattractive return profile, as the alts consistently underperform $BTC on down days, and only sometimes outperform $BTC on up days.”
Altcoins are seeing mixed results. While there are too many Altcoins to choose from, there are many without a clear project. When it comes to investing in Altcoins, it is essential to ensure that the project backing the process is strong. The future of the Altcoins is mostly dependent on the project, which backs the future of the associated coin.
The total supply of the coin has a role to play in deciding the price of the new cryptocurrency. Whether the coin is undervalued or overvalued is something that can be determined by the coin price to total supply ratio.
XRP is trending a bit over $0.320 and is trending by 0.77%, and it has been mostly trading sideways.
Monero (XMR) has been trading at $94.40, which is up by almost 5%, which is the highest when compared to the top 20 Altcoins.
The price of Tezos’ (XTZ) went up to more than 40% during the week. The coin has been trading at $1.45, which is down by 0.06% during the day.
Over July, majority of the Altcoins were down by more than 40%. EOS was down by -44%, Cosmos down by -41%, Cardano down by -37%, Tezos down by -6%, and VeChain down by -10%. These are notable underperformance records related to Altcoins.
From a macroeconomic perspective, “It now seems nearly certain that the four major central banks of the world (the Federal Reserve, the European Central Bank, the Bank of Japan, and the People’s Bank of China) are on the cusp of another monetary easing cycle. As real interest rates decline, the opportunity cost of holding non-yield producing assets like Bitcoin declines. “
It is only for time to reveal if it is work investing in Altcoins and whether Altcoins will gain some strength. With major investor interest geared towards Bitcoin, Altcoins might not gain advantage until the Bitcoin dominance rates drop.
By MAHEEN HERNANDEZ