NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Becoming Reserve Asset for Altcoins: Ark Investment

Davit Babayan
Davit Babayan
1 year ago
3 mins read
bitcoin, ethereum, altcoins

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

A recent run-up in the bitcoin price has been credited to a string of events: the US-China trade war, determined monetary easing by central banks, price manipulation via Tether’s stablecoin USDT, Facebook’s plans to launch its cryptocurrency, as well as a weakening Renminbi. But another factor may be lifting bitcoin as well: altcoins.

New York-based Ark Investment showed in its research that altcoin capital is fleeing into the bitcoin market. Almost every alternative cryptocurrency has established its low against bitcoin since the spike in 2017. Ethereum’s ETH, for instance, is now down 77 percent from its all-time high. Litecoin’s LTC, at the same time, has also dropped by 90 percent against bitcoin. The scenario is the same for Ripple’s XRP. The native cryptocurrency has plunged 67 percent against bitcoin.

“This week, ETH has been trading around $200, still well above its recent low as measured in USD but at a new low relative to BTC compared to the three most recent times it has traded at this price,” Ark wrote while illustrating the scenario with a chart as shown below.

Bitcoin, Ark Investments
ETH/BTC Chart | Image Credits: Ark Investments, CoinMetrics

The first time ETH/USD hit the $200 range was in mid-2017. Around the same period, the ETH/BTC hit .091. But the pair started noticing severe drops even though Ethereum’s USD-rate was well near 200. It happened during August 2017, when ETH/BTC was trading at 0.081, and then during August 2018, when the pair dropped further to 0.034. Today, ETH/BTC is trading at 0.0185.

Liquidity Tool

Chris Burniske, a partner with New York-based Placeholder venture capital firm, theorized in July that bitcoin is becoming the central liquidity provider to other cryptocurrencies. Traders//investors arguably considered bitcoin as their gateway to the universe of cryptocurrencies. Only after purchasing it, they decided to disburse their bitcoin capital into other assets, which can range from ETH to any random, small-cap coin.

Burniske found evidence in the way bitcoin price went up in July while its peers across the cryptocurrency industry trended in red. All the coins in the top ten index were down by more than 30 percent against bitcoin.

Here's the cycle: $BTC rallies hard, majority of "alts" drop as BTC is the main liquidity provider to #crypto (right now) and no one wants to sell BTC.

Value of "alts" in *BTC terms* then drops until whales choose to cycle into "alts." Then… https://t.co/lX9VZz5ecC

— Chris Burniske (@cburniske) May 10, 2019

Su Zhu, the founder of Singapore-based investment firm Three Arrow Capital, also postulated that altcoins that hit all-time highs against the US dollar would always be more in number than those that hit all-time highs against bitcoin.

“Because bitcoin appears to have evolved into the reserve currency of the cryptoasset ecosystem, measuring the performance of crypto assets probably will continue to shift away from a USD benchmark toward BTC,” he added.

Ethereum Looking to Unhinge Bitcoin

While bitcoin would most likely attract capital from homogenous assets, one of them expects to break-free and establish itself as an independent reserve currency.

Multiple pieces of research conclude that Ethereum would no longer be an altcoin. The blockchain platform is idiosyncratic: it has its unique blockchain which hosts over 1,600 dapps with the support of broad support of 250,000 to 300,000 developers.

“It may no longer be accurate to classify ether as an ‘altcoin,’ because its correlation to bitcoin is significantly higher than bitcoin’s correlations to other coins,” said the San Francisco Open Exchange (SFOX) in its study. “It is a blockchain that is publicly recognized as an asset on its own terms, much like Bitcoin.”

Tweet123Share196ShareSend
Davit Babayan
Davit Babayan

Davit Babayan

Davit Babayan is an Armenia-based expat balancing the academic life of a software design engineer with the experiences of a financial technology journalist. He aspires to be a full-time columnist and wants to write a book that would be called, "A Homeless Who Found Bitcoin."

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Litecoin, Aptos, Polkadot, SUI, chainlink, Stellar

SUI Prepares For Bullish Flag Breakout Amid $3 Reclaim – Analyst Doubles The Target

After recovering from the recent pullbacks, SUI is attempting to reclaim a crucial resistance, which could trigger a breakout from...

Rubmar Garcia 1 hour ago
Analyst Sees a Bitcoin Market Shift — Here’s What’s Happening

Analyst Sees a Bitcoin Market Shift — Here’s What’s Happening

The Bitcoin market now appears to be seeing a notable surge in its momentum, with the asset finally breaching the...

Samuel Edyme 2 hours ago
Bitcoin

Bitcoin Latest Rally Backed By Stronger Purchasing Power: Report

Data of the Bitcoin Stablecoin Supply Ratio suggests investors have stronger purchasing power today than during the previous bull rally....

Keshav Verma 3 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

2025年Bitunix限時加密獎勵攻略:註冊、入金、交易三重紅利8月前一次領

Peter Chow 15 minutes ago
Paskutinės 3 dienos: BTC Bull Token sudegina 35 % bendro tiekimo – ar laukia 10 kartų augimas?

Paskutinės 3 dienos: BTC Bull Token sudegina 35 % bendro tiekimo – ar laukia 10 kartų augimas?

Tomas Jankūnas 23 minutes ago
XRP koers kan 78% stijgen na wedge breakout

XRP koers kan 78% stijgen na wedge breakout

Lars Diederiksen 1 hour ago

Premium Sponsors

Press Releases

  • Dự Đoán Giá Fartcoin: Meme Coin Tiềm Năng FARTCOIN...

    43 minutes ago
  • CertiK Validates FUNToken’s

    CertiK Validates FUNToken’s Smart Contract Strength With...

    48 minutes ago
  • Explore Potential Coins

    Peter Thiel của PayPal Hậu Thuẫn Ngân Hàng Crypto...

    1 hour ago
  • Altcoin season uitgesteld? Bitcoin dominantie houdt kapitaal weg van XRP, SOL en ADA

    Những Altcoin Nên Mua Tháng 7 – USELESS, BROCCOLI...

    1 hour ago
  • Cloud Mining

    Free QFSCOIN Cloud Mining Regulated By US Law Launches BTC...

    1 hour ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.