Bitcoin dominance is the crypto market share of the leading cryptocurrency, Bitcoin, over the rest of the crypto market. The indicator has been fluctuating between a high of almost 96% in November 2013 and a low of 33.4% recorded in January 2018, during the craziest altcoin season.
Following the BItcoin’s Bull Run of 2019, the dominance has risen from 51% at the beginning of the year to nearly 70% as of now. However, a new study suggests that the real dominance of Bitcoin is approximately 90%, a lot more than what we are used to.
Market Dominance Calculated
In order to obtain the percentage of each coin, the circulating supply must be multiplied by the coin’s price and then divided by the market capitalization of all cryptocurrencies. Doing this math shows that Bitcoin has always been the most dominant force in the cryptocurrency community. As per Coingecko, Bitcoin’s market dominance today is 68.13%, which is near to the year-to-date high of 69.73%. However, new research by Arcane shows that different numbers may arise when adding trading liquidity to the mix.
90% Bitcoin Dominance
When liquidity is considered as well, Bitcoin’s presence appears to be even more dominant at around 90%. Liquidity is the key to receiving the most accurate market capitalization numbers as per the person who conducted the research – Bendik Schei, who explains:
“The main reason is that one could easily create a cryptocurrency with 1 billion pre-mined coins, and do one trade at say three dollars each. This would lead to a total market capitalization of $3 billion, which would represent 1% market dominance with today’s valuations and inflate the total market capitalization. The problem is that the calculation does not take liquidity into account. One might be able to sell one token for three dollars, but what happens if you want to sell 1 million? Without accounting for liquidity, market capitalization becomes a meaningless measure.”
What is Left for Altcoins?
By modifying the numbers when liquidity is in the mix, altcoins appear to be in an unenviable position. Even the highest altcoins in regular market capitalization like Litecoin, Ripple, and Ethereum struggle to achieve 10% combined. Schei also added: “Everyday Bitcoin stays ahead, it becomes less likely that any other cryptocurrency can compete as money.
TOP 3 Price Prediction: BTC, ETH, XRP — Regular Correction or Prerequisite for Continued Decline?
There is a decline in the cryptocurrency market. In most cases, while everything is happening as part of the correction, in a number of liquid instruments the trend has already become pronounced. Trade volumes have noticeably increased. The capitalization rate has decreased by 7.7% since Monday, and its current value is $261 Bln.
Take a look a the key data for Bitcoin (BTC), Ethereum (ETH), and XRP.
|Name||Ticker||Market Cap||Price||Volume (24h)||Change (24h)|
|Bitcoin||BTC||$168 734 849 787||$9 251,65||$45 323 806 846||-3,94%|
|Ethereum||ETH||$26 299 601 396||$239,39||$22 810 140 265||-8,42%|
|XRP||XRP||$10 679 031 619||$0,244095||$3 163 536 436||-8,31%|
Bitcoin (BTC) keeps falling after a failed attempt to stay above $10,000. At the moment, the chief cryptocurrency has lost almost 4% in the last day.
Taking into account the hourly chart, Bitcoin (BTC) is trading within a descending channel. Based on the trading volume analysis, buyers may retest the top of the channel at around the $9,370 mark.Must ReadWhy Is Bitcoin (BTC) Price Down 12 Percent? Top Analyst Calls Its Safe Haven Status Into Question –
However, the scenario for the upcoming days remains bearish and the $9,000 mark is likely to be broken by the end of February,
Bitcoin is trading at $9,186 at press time.
Ethereum (ETH) is even more bearish than Bitcoin (BTC). The rate of the main altcoin has dumped by 9.22% in the last 24 hours.
Ethereum is already oversold on the daily time frame. Sellers are unable to push the price below the support zone. Moreover, there is a bullish divergence on the RSI indicator. As a more likely scenario, traders might expect a rollback to the closest liquidity zone of $240 by the end of the current month.
Ethereum is trading at $231.08 at press time.
XRP is the biggest loser on our list. The rate of the third most popular coin has dropped by almost 10% in the past day.
XRP is also oversold, which could help cause a price pullback. On the daily chart, the coin touched the support line of the Bollinger Bank indicator. Potential short-term growth is also supported by the trading volume. In this case, there is a high chance of reaching $0.24 soon.
XRP is trading at $0.2350 at press time.
Crypto Today: Bottomless ‘pit’ swallows Bitcoin and altcoins
Here is what you need to know
Rampage has been the order of the day for three days in a row across the cryptocurrency market. Major digital assets such as Bitcoin, Ripple, and Ethereum have suffered greatly at the hand of the bears. The entire market is under duress as cryptocurrencies face the worst selloff since the rally that started in January.
BTC/USD is dealing with increased selling activity. A drop under $9,500 support resulted in a stronger bearish grip. Bitcoin price plummeted to levels close to $9.000. However, an intraday low has been formed at $9,093. The largest crypto is valued at $9,146 while the trend remains bearish and the volatility levels heightened.
ETH/USD is down 3% on Wednesday after correcting from $246.71 (intraday high) to $239.50 (market value). Support at $250 failed to rise to the occasion leaving the bears to their own devices. Ethereum has hit lows of $235.52; it made a shallow recovery but the upside is limited at $240 and $250 respectively.
XRP/USD is trading 3.75% lower on the day after bears pushed the price lower from $0.2522 (opening value) to $0.2428 (market value). The high volatility and a strong bearish trend suggest that losses may still be imminent.
Top 100 cryptocurrencies worst performers
All cryptocurrencies among the top 100 are in losses. However, a number are posting extreme declines such as Bitcoin SV down 12.91%, Tezos down 11.49%, Tron down 10.84%, Dash down 10.62%, NEO down 10.17%, Cosmos down 10.98% and NEM down 12.01%.
Chart of the day
BCH/USD 1-hour chart (Price moving closer to the lower trendline of a falling wedge pattern. Further dip is likely to find support leading to a breakout above the wedge pattern in the short-term).
MoneyGram relationship with Ripple balloons
MoneyGram, a global payments provider is expanding the use of both Ripple and XRP for its international money transfers. In a recent earnings call, CEO Alex Holmes said that the firm plans to launch more payment corridors utilizing Ripple’s RippleNet to cater to account-to-account transfers.
“Our progress on the Ripple partnership has been instrumental in helping us lead the evolution of digital P2P payments… Today, our trading volume continues to grow and we’re partnering to expand the service to more corridors.
I’m also excited to announce that we are working to integrate RippleNet for account-to-account transfers in 2020. This new integration will further accelerate our progress in accomplishing our vision of real-time global settlements.”
The Bank of Canada (BoC) is yet to see any viable reasons as to why it should issue a central bank-backed digital currency (CBDC). According to the Deputy Governor, Timothy Lane, there is no threat to cash at the moment. However, if a competitor like Facebook’s Libra becomes successful then such digital currency considerations could be made. Despite taking part in CBDC concept study and research the bank concludes that:
There is not a compelling case to issue a CBDC at this time. Canadians will continue to be well-served by the existing payment ecosystem, provided it is modernized and remains fit for purpose.
In Japan, three significant economic watchdogs have come together in support of CBDC. The Finance Ministry, the Financial Services Agency, and the Bank of Japan are said to have participated in discussions that explore the possibilities of digital currencies and related economic impact. The three have also decided to focus on advanced research and analysis regarding the technological aspect of digital currency initiative. Haruhiko Kuroda, Bank of Japan governor was quoted in a local news daily saying:
We are advancing research and study from the technical and legal perspectives so that we will be able to move in an appropriate way when there is a growing need.
Coinbase has announced that its Coinbase Wallet has started support for Ethereum Name Service (ENS). The support will see users send ETH payments to a human-readable ETH address format. Users will feel as though they are sending crypto to an email address, unlike the usual hexadecimal addresses. It is important to note that the users must be registered under the ENS to utilize the new service.
Quote of the day
Economically, if you want to be viable as a community, you have to have some sort of technological expansion to ensure your survival. I think this is one way to do it, not just from a price standpoint of buying Bitcoin but also, from the technological standpoint, building the products we’ll use in the future.
Isaiah Jackson, author of “Bitcoin and Black America.”
Crypto Investor’s Case Against AT&T Over $24M SIM Hack Can Proceed, Judge Rules
Cryptocurrency investor Michael Terpin can move forward with his case against mobile operator AT&T over his claims the firm was in part responsible for a SIM-swap hack that robbed him of holdings worth $24 million.
In August 2018, Terpin initiated the case against AT&T alleging that an employee, named as Jahmil Smith, had been bribed by a “criminal gang” to assist the fraud, which passed control of the investor’s SIM card to the hackers. Terpin alleged that while he was on the telco’s hotline trying to regain access to his phone, his cryptocurrencies were stolen by the gang.
In the latest document from the case, filed on Monday, Judge Otis Wright II at the U.S. District Court in the Central District of California denied much of AT&T’s most recent motion to dismiss the case.
The court had found in July that while Terpin had sufficiently alleged that the hack was “reasonably foreseeable,” he had not shown proximate cause because he did “not connect how granting the hackers/fraudsters access to [his] phone number resulted in him losing $24 million.”
With the investor allowed leave to amend the complaint, Wright found that Terpin has now sufficiently alleged proximate cause between AT&T’s conduct and the theft.
AT&T had also contended that Terpin did not provide facts to support his claim that two-factor authentication (2FA) was involved in the crime because his cryptocurrency wallets may or may not have used 2FA – an extra level of security that sends a code to a related cellphone number to allow account access.
However, in denying the firm’s motion to dismiss, the judge said, “Mr. Terpin alleges sufficient facts for the Court to reasonable infer the hackers may have used 2FA methods to glean Mr. Terpin’s personal information from various accounts, such as email or cloud storage.”
AT&T had also attempted to have Terpin’s tort claims for financial losses thrown out by contending that they are barred by economic loss doctrine, which sets out that parties entering a contract should be able to anticipate any potential losses resulting from a breach of the agreement.
However, if there is a “special relationship” between the parties, tort claims can be made if one party breaches the contract.
Judge Wright found that since Terpin was required to share personal information with AT&T “with the understanding that AT&T would adequately protect it,” he had sufficiently made a case for there being a special relationship.
On points where Judge Wright did not rule against AT&T in the motion, Terpin has been given 21 days to file an amended complaint to address any deficiencies.
Terpin is suing AT&T for $23.8 million in compensation, as well as $200 million in punitive damages.
In a press release on Tuesday, Terpin announced that he will file a second amended complaint before the court’s deadline to support his request for punitive damages. He plans to demonstrate “how AT&T was both knowledgeable of, and responsible for, an ongoing sequence of cryptocurrency thefts due to SIM swaps dating back to well before Terpin’s hack,” the release states.