Altcoin fatigue has taken over the crypto markets, and most trading activity has circled back to concentrate on Bitcoin (BTC). Typically, the original cryptocurrency takes up around 30% of all trades, but the proportion increased to more than 37% as of December 14. While prices struggle to remain in their current range, another sell-off has pushed them closer to $3,300.
An even more dramatic change for BTC trading is the expanded influence of Tether (USDT) pairs. During Thursday’s sell-off, more than 71% of all trades happened in the BTC/USDT pair, based on data from CryptoCompare. Later, the proportion fell to about 68%, remaining relatively high.
Altcoins still have a relatively high market dominance due to their sheer number. Some tokens and coins continue to see the occasional pump. However, Bitcoin’s dominance expanded to more than 54% after dropping to as low as 32% in January.
The persistent parking of funds from altcoins into Bitcoin and then into the most widely used stablecoin may be reflecting expectations of further price drops.
BTC prices are moving near yearly lows and have lost more than 80% in the past 12 months, resulting in steep personal losses for investors who bought at the peak.
Meanwhile, Bitcoin Cash (BCH) and Bitcoin SV (BSV), which are attempting to position themselves as the better alternative blockchains, have seen their price reach record lows, both in dollar terms and against BTC.
BCH sank to $89.04, while BSV went as low as $80.17, the slide further undermining the two projects. Volumes for the two alternative chains are also extremely low, amounting to a fraction of those for the pre-fork Bitcoin Cash. Read more