Bitcoin has been on the rise since the first half of this year and has expanded further in the past few weeks. Despite this, the old adage "water rising" has not been proven to be suitable for the password market so far, as most of the major coins are slowly being sucked.
The poor performance of the competition currency has caused the market capitalization of Bitcoin to rise to a new high, which may indicate that more competitors will start to turn to Bitcoin.
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Bitcoin market share has climbed to nearly 70%
As of press time, Bitcoin prices were slightly above $11,800, well above the single-month low of around $9,100.
This positive price trend has not yet brought a positive signal to the entire cryptocurrency market, as most major competitors have been spiraling down.
As of press time, Ethereum fell about 2% in 24 hours, and the price was $212, well below the single monthly high of over $300.
Litecoin also faces a similar bearish price trend, and its halving this week does not seem to have brought too much price positive impact on the currency. The current price of Litecoin is $86, which is a sharp drop from the monthly high of over $120.
The fall in the price of competing coins led to a rise in the market value of bitcoin to 69.6%, reaching a new high since the beginning of 2017.
(The market value of Bitcoin accounts for nearly 70%, source: CoinMarketCap )
Competitor investors flee?
It is worth noting that the decline in the competitive currency market has hardly shown signs of a slowdown in the short term, which has led many to believe that investors will continue to withdraw from the competitive currency market and instead buy bitcoin.
Gold supporter Peter Schiff is also a bit of a bitcoin critics. He said in a recent tweet that bitcoin may have become a hedging tool for competing coins at this stage.
“Because Bitcoin’s share of the total market value of cryptocurrencies continues to rise – currently 69%, if Bitcoin is used as a hedging tool, it’s likely that competitors have increased the allocation of this high-quality currency. To hedge their encrypted portfolio."
Although it is still unclear whether the trend of large amounts of funds moving from competitive currencies to bitcoin will continue in the long run, in the short term, this may be one of the ways to push Bitcoin higher.