LongHash researchers have concluded that the ongoing recovery of the cryptocurrency market is most pleasing to Bitcoin holders and, to a much lesser extent, to altcoin investors. Experts state:
2019 is a great year for Bitcoin, the price of which has increased by about 180% since January 1. Although the altcoins also show a positive trend in dollar terms, they don’t keep up with the first and most popular cryptocurrency in the world. This is especially evident in recent months.
According to the Bletchley 40 index, small-cap altcoins have fallen by 54% relative to BTC since April 1. Other categories of alternative cryptocurrencies demonstrated similar dynamics. Below is illustrated the dynamics of the indices of altcoins with different capitalization in relation to Bitcoin:
(Chart of altcoin indexes against Bitcoin in 2019. Resource: Bletchleyindexes)
As can be seen on the graph, the last three months were not successful for the altcoin market. So, the Bletchley Ethereum tokens index sank 39% in relation to Bitcoin, top 40 – by 54%, and top 20 – by 34%. Thus, the growth dynamics of altcoins directly correlates with capitalization. Thus, unpopular coins are more prone to price risks.
According to the observations of researchers, only a few assets surpassed Bitcoin in terms of growth rates. For example, despite the delisting from various cryptocurrency exchanges, the cost of Bitcoin SV (BSV) against BTC rose by 17% in three months, and Chainlink (LINK) – by 168%. The biggest loser among the popular coins, the researchers called the Ripple XRP token. Coin decreased in relation to Bitcoin by 50%. Thus, LongHash researchers don’t share the opinion of some experts who believe that the “altcoin season” is already on the threshold. They reported:
In the past, altcoins mostly outperformed BTC during the bull phase of the crypto market. At the same time, they showed negative dynamics in relation to Bitcoin during recessions. However, this trend hasn’t manifested itself over the past few months.
In addition to their research, experts refer to the data CoinMetrics. According to this, the correlation between Bitcoin and other coins has become less close in recent months.
Earlier, the legendary trader Peter Brandt expressed the opinion that crypto traders should reduce their fervor, because, in his opinion, a sharp jump of altcoins costs is not expected.