Despite plunging by nearly 10% and losing more than $500 on Wednesday after the SEC delayed its verdict on a bitcoin (ETF) filed by the Chicago Board Options Exchange (CBOE), bitcoin now accounts for almost half of the entire cryptocurrency market.
Latest data from CoinMarketCap shows bitcoin has expanded its dominance to 48.94 percent of the total cryptocurrency market. Indeed, bitcoin last reached such levels in December 2017 when its price reached a record high of almost $20,000.
Bitcoin is the foremost digital coin and it has always been the topmost ranked cryptocurrency by market capitalization but following the crash of late 2017, BTC saw its market dominance slip severely, dropping to as low as 36% in May 2018 before it climbed back to 45% in July.
In what is a rare turn of events, bitcoin’s recovery in recent weeks appears to have led to a slide in altcoin prices, instead of pulling them up with it. Some of the top 20 Altcoins like Ethereum, Ripple, Nem and Bitcoin Cash have seen their prices flat line or dip profoundly over the last couple of months. XRP has seen almost zero growth in 2018 and while XEM continues to struggle following the hack of Coincheck which resulted in the theft of half a billion dollars’ worth of NEM tokens.
Experts say the dip in altcoin prices is probably due to a technical correction after prices across the entire cryptocurrency space spiked significantly in mid-July as the market anticipated the SEC’s verdict on the Winklevoss Twins’ bitcoin ETF application.
According to Tom Lee, a leading crypto analyst, an increase in bitcoins market share is sure to have a positive impact on its price and contribute to another market rally. In his forecast for 2018, Lee, a Wall Street veteran believes that bitcoin would sell for $25,000 by the end of the year.