- The head of Digital Currency Group explains, why altcoins are well-positioned for a rally.
- Large-cap coins will be the main beneficiaries of the trend.
The head of Digital Currency Group Barry Silbert believes large-cap altcoins will play catchup with Bitcoin sometime soon. The expert noted that altcoins had appreciated significantly in a recent month; however, they still lag behind.
“Starting to feel like it is time for the quality alt coins to begin catching up with BTC. I think the bottom is in,” he wrote in his Twitter account.
Meanwhile, bitcoin dominance has been growing recently, as measured by its market share. The first digital coin has over 65% of the market, which is the highest level in more than two years. Last time Bitcoin dominance exceeded 65% in April 2017.
It is also worth noting that Bitcoin’s market share has grown by 15% in less than for mont: from 50% at the end of March to over 65% by the time of writing.
However, if history any guide, the altcoin market will play catchup with the leading cryptocurrency sooner rather than later.
Thus, in late 2017- early 2018, we witnessed a belated altcoin rally that started after Bitcoin’s bulls calmed down. That is especially true for the coins with large market capitalization, though small-cap coins might also experience a good rally.
This phenomenon is explained by growing trading activity in BTC trading pairs on various cryptocurrency exchanges. The create channels for the new liquidity that naturally flows to altcoins.
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