Although the bitcoin is still the leader in the cryptocurrency market, investors seem to be diversifying their portfolios further. According to Grayscale report, the demand for the altcoins is increasing from major negotiators.
In April this year, the bitcoin accounted for just over half of the entire cryptocurrency market. However, during the year, the dominance of the currency increased significantly, reaching a peak of 72%. Despite this result, in recent weeks the bitcoin’s share has fallen by almost 6%, to the current level of 66.3%.
In addition to the drop in market dominance, the main cryptocurrency is also recording low trading volumes, also in the derivatives market of digital assets.
To get an idea, Grayscale Investiments reported having recorded its best quarter so far, showing the historic high of US$ 254.9 million in new investments. In the first quarter, for example, the investment firm recorded capital inflows of US$ 42.7 million, with 73% of these entries coming from institutional investors. However, more than 97% of the flow was invested in the company’s exclusive bitcoin fund – the Bitcoin Trust.
Hegemony of bitcoin loses ground to altcoins and reaches 66%
Thus, institutional investors bought 2/3 of bitcoin and 1/3 of altcoins. That may be the reasons why bitcoin dominance has fallen to 66.3%. Despite the new moment, the bitcoin still moved approximately US$ 170 million of the funds invested by the company.
The fact is that the trading volume of digital assets has had a drop in recent months. Among the top ten exchanges, the daily volume of traded bitcoin fell to less than US$ 200 million. This represents a significant decline compared to the US$ 4 billion volume recorded during the currency’s high in June this year.
Even with the recent fall in the bitcoin, the report points to a positive outlook for the cryptocurrency. Some analysts are still optimistic about the future of the digital asset in the short term. A new analysis model even suggests that the bitcoin will reach more than US$ 15,000 before May 2020.