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Bitcoin (BTC) has been on an upwards ascent throughout the first half of 2019 that has extended further over the past couple of weeks. Despite this, the age-old adage of “a rising tide lifts all boats” has not proven to be applicable to the crypto markets as of late, as most major altcoins have been slowly bleeding out.
This lackluster performance for altcoins has allowed Bitcoin’s dominance to surge to fresh yearly highs and may signal that even more altcoin investors will begin fleeing towards Bitcoin.
Bitcoin Dominance Climbs to 70% as Altcoins Plummet
At the time of writing, Bitcoin is trading up slightly at its current price of just below $11,800 and is up significantly from its one-month lows of roughly $9,100.
This positive price action as of late has not led to any positive price action for the aggregated crypto markets, as most major altcoins have been spiraling lower.
At the time of writing, Ethereum is trading down nearly 5% at its current price of $210.72 and is down significantly from its one-month highs of over $300.
Litecoin has similarly faced bearish price action, despite all the hype surrounding its recent halving event, and is currently trading at $85.45, which marks a significant pullback from its monthly highs of over $120.
This drop in the aggregated crypto markets has allowed Bitcoin’s dominance to climb to nearly 70%, which is the highest that it has been since early-2017.
Will Investors Continue Exiting Altcoins in Favor of BTC?
Importantly, the decline in the altcoin markets has shown few signs of letting up anytime soon, which is leading many to believe that investors will continue exiting their altcoin positions in favor of Bitcoin.
Peter Schiff, an outspoken critic of Bitcoin and a proponent of physical Gold, explained in a recent tweet that Bitcoin may currently be a hedge against altcoins.
“Since Bitcoin’s dominance of crypto currency total market capitalization continues to rise, now at 69%, it’s likely that if Bitcoin is being used as a hedge at all, it’s altcoin owners hedging their crypto portfolios by increasing their allocation to the highest ‘quality’ brand,” he explained.
Since Bitcoin’s dominance of crypto currency total market capitalization continues to rise, now at 69%, it's likely that if Bitcoin is being used as a hedge at all, it's altcoin owners hedging their crypto portfolios by increasing their allocation to the highest "quality" brand.
— Peter Schiff (@PeterSchiff) August 8, 2019
Although it is unclear as to whether or not the mass exodus away from altcoins and towards Bitcoin will continue in the long-term, in the short-term it may provide fuel to propel BTC higher.
Featured image from Shutterstock.
