The dominance of the alternative cryptocurrency “Altcoin” in the cryptocurrency market reached its highest level since June 2018 after the Bitcoin price plummeted over the weekend.
At the time of writing this article, Bitcoin is dominating and stabilizing at 40%, while Ethereum is close to 20%.
While the rest of the alternative cryptocurrencies share the remainder.
Bitcoin has fallen to levels below $ 50,000, but despite that it’s still up nearly 55% since January 1.
A number of analysts point the finger at “Elon Musk”, who suddenly announced that the company will stop accepting payments in bitcoin.
Musk also hinted that Tesla might unload some of its bitcoin holdings, but later clarified that Tesla did not sell any of its bitcoins.
Is this the long awaited alt season?
Analysts noticed a continuing trend towards the altcoin season for several months.
In early May, Chad Stinglas, Head of Commerce at CrossTower stated:
AS BTC WAS STRUGGLING TO FIND THE UPSIDE, ETHEREUM AND MANY OTHER CURRENCIES CAPTURED THE ATTENTION OF TRADERS.
WHILE BITCOIN’S PERFORMANCE RECEIVED SIGNIFICANT POSITIVE COVERAGE THIS YEAR, INTEREST IN IT HAS WANED COMPARED TO THE PERFORMANCE OF ETHEREUM AND OTHER ALTERNATIVE DIGITAL CURRENCIES.
In his statement, Stinglas added:
BITCOIN BULLS WERE HOPING FOR SOME GOOD NEWS
AFTER THE BITCOIN HIT RECORDS AT THE END OF APRIL, SPECULATORS RAISED THEIR HOPES FOR A RALLY AND ANNOUNCED ANOTHER COMPANY ADDING BITCOIN TO ITS RESERVES.
HOWEVER, THE EARNINGS REPORTS CAME AND WENT WITHOUT MENTIONING BITCOIN
EVEN THE MAJOR COMPANIES THAT HAVE ALREADY PARTICIPATED IN THE BITCOIN RISE HAVE ANNOUNCED THAT THEY ARE CHANGING THEIR PLANS TOWARDS BITCOIN.
Some crypto analysts believe that Tesla’s initial entry into Bitcoin would inspire other companies to do the same, but the general entry of other large companies into bitcoin and other cryptocurrencies has not materialized in the way many observers would hope.
Now that Tesla has backed away from accepting bitcoin, it looks like the opposite may happen, and attention may turn to other alternative currencies.