It was a mixed week for cryptocurrencies as major tokens such as Bitcoin and XRP were able to recover from sharp drops at the start of the week to end the week trading green. Conversely, others such as Ethereumand Cardano did not recover well and ended the week deeply red.
An emerging story in the current bear market is the sustained, increasing rate of Bitcoin dominance. BTC’s value share of total crypto markets stood at ~36% on May 7th, it currently sits at ~51%, having grown significantly in the last three months.
Bitcoin’s popularity in the bear market compared to other crypto is likely tied to factors such as its liquidity — BTC gives numerous options to onramp onto fiats swiftly during sharp price drops or access alt coins during trend reversals.
The bitcoin network is also by most measurements the most fundamentally sound public blockchain. With a steadily increasing hash rate & difficulty, a sustained level of BTC being sent across the network and the retention of blockchain’s original and most recognizable consensus/ block size model, it has retained a ‘best house on a tough street’ appeal. Bitcoin’s comparative strength in the bear market has been evidenced by its steady ~2.5% growth in the last 7 days.
In terms of more long term news stories, in the past week, the trend of smart money flowing into the distributed ledger space continued. Major blockchain Mining equipment producer Bitmain, announced plans to raise $3 billion through a public IPO. Investors may want to hold back before getting too excited about potential wider market effects of the offering given the large, potentially illiquid, holding of Bitcoin Cash Bitmain has on its books.
Pantera capital also announced plans to raise 175 million USD for a third crypto venture fund, far exceeding the 25 million and 15 million it raised from previous ventures. This indicates underlying confidence in new blockchain ventures, in spite of the recent price struggles by the vast majority of altcoin projects and bearishness surrounding the state of ICO markets.
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