In the past few weeks, the Bitcoin established its dominance of the crypto market with a surge in market capitalization. The Bitcoin consisted of 58% of the total market capitalization of the entire crypto market. This is a jump from 53% in just six weeks
Bitcoin Cannibalization of the Crypto Market Establishing Dominance
Analysts have a positive outlook for the Bitcoin as shown in its recent strength. In the past few months, the market has seen a bias towards the Bitcoin. As a testament to this, the $42.7 million investment from Gray Scale Investments, a conglomerate of the Digital Currency Group, saw 95% of the investments funneled to the Bitcoin trust. This is particularly impressive with ove 70% of the investments coming from institutional investors.
Crypto market legend Mike Novogratz commented on the bitcoin growth. Responding to an interview in CNBC, he mentioned that the bitcoin will likely outperform their Altcoin counterparts. He is adamant that the more mature investors have now resigned to the idea of the bitcoin being better as a value store much like gold.
Instead of Bitcoin Cannibalization, Altseason May be in the Plate
Despite the the Bitcoin dominating, some of the analysts will be looking at a possible altseason where the other crypto coins are looking to bounce back and pull back some market cap from the Bitcoin. More of an opposite to the Bitcoin Cannibalization.
Analysts are already expecting the Altseason with the altcoin rise in the next few weeks. They are now seeing the rebound from the Altcoins. This comes after the Bitcoin Cannibalization that saw the capitalization of the Altcoins fall. It has started slowly for the Altcoin in May but historically it is a good time for the altcoins to gain some momentum. Analysts will now have to wait whether the Altseason comes of we see more dominance from the Bitcoin and continuing Bitcoin Capitalization.