Many are anticipating regarding the future of Bitcoin. Though it is still far from its all-time high last December, many believe that a Bitcoin ETF could change all of this.
It is true that the US Securities and Exchange Commission has delayed its decision on a Bitcoin ETF yet again. However, it is also true that we are close to having a Bitcoin ETF today. The SEC’s comment is also not exactly negative. The agency mentioned that it has not “reached any conclusion with respect to any of issues involved”.
You also have the likes of Tim Draper who is back with his $250K Bitcoin price prediction. In addition to this, you have Mike Novogratz of Galaxy Digital who thinks that Bitcoin has already bottomed at $6k.
A lot are actually wondering if Bitcoin is going to have another bull-run considering all of these things that are happening?
You also have the reality that Bitcoin has 51% share of the entire crypto market today. In the last few days, it even had a 55% share of the entire crypto market.
Another Bull Run?
Why is Bitcoin’s dominance in the market so important at this point? What we have observed in Bitcoin is that its dominance is at its lowest during the bull run. This was true especially in January when most of the other altcoins were only booming and trying to make a name for themselves. However, considering that Bitcoin’s dominance dropped from 55% to 51% while other altcoins are also on the rise, it may be apparent that another bull run is coming.
Bitcoin’s popularity is on the rise during bearish times. There are a few explanations regarding this trend. It is possible that investors are holding on to Bitcoin in times of instability. It is also the natural choice especially for those who are just beginning to invest in cryptocurrencies. And since it is considered a safe haven during bearish markets, it is also logical why some altcoins are down while Bitcoin remains somewhat stable.
There are those that are going back to altcoins though whenever they see that the trend is going up again. This means that altcoins have the tendency to rise higher and even fall harder considering the relatively lower volume and market cap that altcoins have.
Should You Trust Stablecoins?
Another strategy that you can go for if you wish to maintain your investment but too uncomfortable with crytpos is to go after stablecoins. However, a lot of people still don’t trust stablecoins such as Tehter. Many doubt that Tether has the dollar reserves to back its price. Others also suspect that it has been used to manipulate the price of Bitcoin.
What Happens Next to Altcoins
Another important question is that which altcoin is going to become dominant in the coming days? Weiss Ratings mentioned that those altcoins that have suffered 90% losses are most likely on its way up to experience at least 10x increase.
But of course, you have the likes of Vitalik Buterin, the co-founder of Ethereum who doesn’t think that this is still possible at this point. He believes that the market has matured enough that the days of seeing 1000x increase in price isn’t happening anymore.