After hitting $42k in early January, Bitcoin has retreated 25% since and hit $31k today as regulation uncertainty mounts. Case in point, earlier this week, Janet Yellen, expressed concerns about cryptocurrencies and illegal activities. But this isn’t the only issue…many think Bitcoin (and Tesla) is a bubble that continues to get bigger.
Scott Minerd, Guggenheim Partners Chief Investment Officer said weeks ago that Bitcoin was going to $400k, but today said Bitcoin peaked for the year and was heading back to $20k.
Today, JPMorgan Chase & Co. one of the biggest banks in the world, said as bitcoin and other cryptos become more mainstream, their correlation with other assets increases and said called bitcoin a bag hedges against the US dollar.
During all this FUD, I noticed one of my new favorite coins, Polkadot has been holding up pretty good. Polkadot is a cutting edge blockchain that expands on the progressive guarantee of past blockchain networks. Polkadot is a sharded multichain network, which means there are no bottlenecks like on legacy blockchains. But it’s not just Polkadot holding up well, other altcoins are holding their gains too.
Experts often say the altcoins rally with Bitcoin, and even fall with it. On 21 January, Longhash revealed that in the last seven days, 92% of crypto tokens “outperformed Bitcoin.”
Based on Messari’s price data, Longhash tracked 69 crypto tokens — each of which daily reported trading volume of about $100 million. Among these, 66% of tokens’ prices increased in the past week, and over half of the 46 tokens that gained against the dollar increased more than 10%.
A mere 33% of tokens’ prices went down against the dollar. Specifically, prices of five tokens, including Wrapped BTC, Dash, Bitcoin SC, Zcash, and Maker fell by much more.
Bitcoin dominance refers to how much money is held in bitcoin, compared to other cryptocurrencies. It’s essential the relative strength of Bitcoin vs. altcoins. People have been talking about the coming of age of a resurgence in alt coins for years, but it has never really materialized, with the exception of a few standout altcoins. Based on the most current red candle, which has 10 more days before it closes, we could see more gains for the altcoins.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.