During the first week of July the price of bitcoin (BTC) ranged between USD 11,100 and just over USD 11,500, although over the course of days, it almost got to USD 12,000 in the market. The cryptocurrency still has not reached its historical maximum but continues to overcome the weak growth of altcoins in 2019. There is a very large psychological barrier located at $21,000, a point at which BTC arrived during the last great bullish trend. In this opportunity, the members of the community expect a new historic maximum by the end of this year or next.
The most important news of this week have been influential factors in Bitcoin’s price, as well as in the interest aroused in the community of investors in cryptocurrencies. Recently, information has been made public regarding the mining profitability and the possible consequences that the next Litecoin Halving can bring, so we will be analyzing all the significant aspects of these events.
5 events could have an impact on the market due to the amount of money that will mobilize after such announcements. Lately, a significant part of the community has been reincorporating into the market and positive eventualities have been reported for the Litecoin miners.
In addition to these announcements, we can appreciate that:
Bitcoin continues to outperform the weak growth of altcoins in 2019, with a market dominance now over 60%, for the first time since more than a year ago. Even so, the cryptocurrency still fails to reach its historical maximum. Unexpectedly, this bull run did not have an equitable accompaniment by the altcoins, since their prices have not had the same growth that characterized them during the increase of 2017. Everything seems to indicate that the price of the altcoins will remain stable under the current levels in the market until the next Bitcoin price change, or in the case of Litecoin, its halving.
Another way to appreciate the strong contrast between the current position of bitcoin and other altcoins, is by examining its equilibrium point. If the value of cryptocurrencies suddenly increased by 1000% tomorrow, bitcoin would trade at a value of 110,000 USD; a price more than 5 times higher than that reached in the rise of 2017. For the rest of the cryptocurrencies, it would be a different story. Approximately 70% of cryptocurrencies remain below their historical maximum of 2017 and 2018, even with a 10-fold increase in their price.
In this way, the announcement of Facebook’s cryptocurrency, Libra, seems to have caused the additional capital to flow into the world of cryptocurrencies, most of which has been accumulated by bitcoin. Since the most recent news about Libra came out to the public, bitcoin has risen more than 23%, since the initiative backed by numerous corporations has validated even more the need to have legitimate money that is not controlled by companies or governments.
Finally, another possible reason for the lack of growth in the market prices of the altcoins could be the slow rate of most of the equipment. Not many altcoins have managed to accumulate a large community of users, which leads investors to think more critically about the valuations of those projects.
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