• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
Breaking News: Bitcoin Price Retests $27K Following Fed Rate Decision
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: Bitcoin Price Retests $27K Following Fed Rate Decision
bitcoin, ethereum, altcoins

Bitcoin Becoming Reserve Asset for Altcoins: Ark Investment

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

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.

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!
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.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

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
Win up to $1,000,000 in One Spin at CryptoSlots
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

Bitcoin

Bitcoin Price Action Mirrors Q1 2021, Volatility Ahead?

10 hours ago
XRP

XRP Might Target $0.50 If It Continues To Trade Above This Level

11 hours ago
Ethereum (ETH) number of addresses surges

Number Of Ethereum Addresses In Profit Hits 10-Month High As ETH Continues Rally

12 hours ago
Bitcoin

Bitcoin Coinbase Premium Continues To Decline, Buying Pressure Ending?

13 hours ago
litecoin rally

Why Litecoin Could Be Gearing Up For Its Greatest Rally Since 2017

13 hours ago
Ethereum bull

On-Chain Data Indicates Ethereum’s Bullish Trend Could Continue

15 hours ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

In the journey from Web2 to Web3, Ethereum (ETH) and RenQ Finance (RENQ) play a significant role; here’s why!

March 25, 2023

Whatever Happened To Bitcoin Cash? – Learn Why Avorak AI and Other AI Crypto Are Surging

March 24, 2023

Avalanche Price Prediction: are AVAX and TOADS ready to 10X?

March 24, 2023

Litecoin (LTC) and Dogecoin (DOGE) Drowning in Controversy While TMS Network (TMSN) Steals the Show

March 24, 2023

The Best Altcoins To Get In Early 2023: TMS Network (TMSN), TRON (TRX) and Mask Network (MASK)

March 24, 2023

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.

Links

Crypto Prices from Nomics

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

© 2022 NewsBTC. All Rights Reserved.

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

© 2022 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.