Bitcoin dominance has reached its highest point this year, currently it’s sitting at a whopping 58% of the total cryptocurrency market capitalization. While many altcoins are currently deep in the red, Bitcoin is holding on to positions above $6000. Bitcoin might be one of the few coins able to retain most of its value, that doesn’t mean we’re out of the bear market just yet.
Among the biggest losers, we can see that Ethereum is going through a large drop in value, reaching $170 and showing no signs of slowing down. Ethereum’s price was heavily influenced by the ongoing craze surrounding the many Initial Coin Offerings (ICOs), of which a lot have failed recently.
We might see more Ethereum competitors gain a significant amount of market-share in the future, as the competition to become the top smart-contract platform increases. The fact that investors can now bet against Ethereum through P2P trading platform BitMEX, is also a factor for the ongoing price drops.
I fully expect to see many failing ICOs selling off their Ethereum holdings, to ensure they retain enough capital to cover ongoing costs. This sell-off will likely increase in the future, as more and more projects are experiencing problems staying afloat.
DISCLAIMER: I do not offer any trading advice, do your own research before you invest!