• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
bitcoin, ethereum, altcoins

Bitcoin Becoming Reserve Asset for Altcoins: Ark Investment

Davit Babayan by Davit Babayan
4 years ago
in Bitcoin, Cryptocurrency Market News, Ethereum, Litecoin, Ripple, Technical analysis
Reading Time: 3 mins read

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.”

Tags: altcoinsbitcoincryptocurrencyethereumLitecoinRipple
Tweet123Share196ShareSend
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."

Related Posts

Best Baccarat Online Casinos – Online Baccarat for Real Money

Best Baccarat Online Casinos – Online Baccarat for Real Money

2 hours ago
Optimism

Bedrock Upgrade: How Optimism Game-Changer Could Impact OP Price

5 hours ago
XR[

XRP Climbs 12% As Crypto Celebrates 11-Year Milestone

22 hours ago
ARB

Whale’s ARB Accumulation Rekindles Momentum For DeFi Token – Here’s Why

24 hours ago
Floki Inu Gains Momentum As Chinese E-Commerce Giant Recognizes Its Utility

Floki Inu Gains Momentum As Chinese E-Commerce Giant Recognizes Its Utility

1 day ago
Bluelight Game Mechanics Overview

Bluelight Game Mechanics Overview

1 day ago

Premium Partners

Play Finance

Now Trending

  • Potential 20x+ Crypto Presales 2023

    4 days ago
  • Willing to buy new crypto: Here are the best 10...

    4 days ago
  • Best Crypto Meme Coin Presales in 2023

    4 days ago

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

  • According to experienced traders, Aave (AAVE) and InQubeta...

    1 hour ago
  • Avalanche price at important support level, Quant price to...

    3 hours ago
  • Looking for the next Crypto That Could 100x? Check...

    3 hours ago
  • Tradecurve (TCRV) Presale Bonus Attracts More Investors As...

    3 hours ago
  • XRP and Big Eyes Coin (BIG): Riding the FOMO Wave in the...

    4 hours ago

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.

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2023 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Claim 7 BTC

© 2023 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.