Bitcoin’s Dominance Continues to Rise in 2019
The cryptocurrency market has shown an interesting behavior so far in 2019, with some of the major tokens posting significant gains. If until 2018, Bitcoin was setting the mood for the entire market, we can now notice that market participants had started to focus on the large-cap tokens, and thus creating a divergence in terms of different price performances.
The biggest winner – Bitcoin
At the beginning of the year, Bitcoin was trading around the $3,600 area and since then it managed to more than double in price, currently trading at $7,800 on the Coinbase exchange. Even the bearish market that wiped out significant value from major cryptocurrencies during 2018, had a positive impact on Bitcoin, which had increased its market dominance from 33% in January 2018, towards 56% at the time of writing, according to the information available on coinmarketcap.com.
As the oldest cryptocurrency, Bitcoin continues to inspire the most trust among cryptocurrency investors. Investment companies wanting to invest in digital assets had focused a large portion of their funds in Bitcoin. There are more than 4,000 Bitcoin ATMs at a global scale, countries like Japan already consider it a payment system, and all the exchange platforms support Bitcoin pairs.
It makes sense to see trading Bitcoin against the US dollar picked up significantly in 2019, reaching levels not seen since July 2018.
Alt text: Bitcoin US dollar chart
From a technical point of view, a nice parabolic structure, that started back in December 2018, continues to unfold, with buyers continuing to buy on dips, supporting further gains.
Risks to the downside?
One of the most important events which will be watched by the cryptocurrency industry is the G20 meeting which will take place in Japan at the end of June. It had already been announced that cryptocurrency regulation will be on the agenda, which means any concrete decision taken at the meeting could have a meaningful influence on the market.
However, expectations are cautiously-positive, considering that the meeting will be led by Japanese officials. At the present time, Japan is one of the most important crypto-friendly countries, being the first one to recognize Bitcoin as a payment method since 2017. It is expected that the country will try to persuade the other G20 members in order to support a friendly approach to blockchain-based application and cryptocurrency, which might further support the market. Yet, investors might enter a wait and see mode until the meeting will end, meaning the Bitcoin trend could take a pause before it continues to move higher.
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