Cryptocurrencies were upbeat on Wednesday—the total market cap is bursting through the roof and trading volumes are huge—but sadly, this enthusiasm is concentrated in Bitcoin.
Bitcoin’s market share rose to 59.6%. To put that in perspective, it accounted for 49% at the start of October. At one point in the summer, it even fell below 40%. However, BTC dominance has been creeping up…
To make matters worse, this rising concentration in Bitcoin is happening in a bull market.
There are more than 1,200 cryptocurrencies. If money were flowing out of the bottom half, or even the bottom 1,000, Bitcoin dominance would rise. But at least it wouldn’t affect Ethereum prices. That’s not what’s happening here.
In the last week, the total market cap of cryptocurrencies surged from $165.1 billion to $184.3 billion. Money is flowing into, rather than out of, the market. There’s a term for this…it is called a bull market, folks.
Yet, for some reason, the gains are confined to Bitcoin, Bitcoin Cash, and BitConnect (at least from those in the top 10 list). Gee, I wonder what these three have in common?
Perhaps a strong bullish piece of Ethereum news could derail this trend, but for now, it looks as if this cycle must play out.
With this in mind, it’s no surprise that the Ethereum to USD exchange rate is struggling to break $300.00. We believed that fight had ended earlier this week, but then ETH prices fell to $298.93.
Daily Ethereum Chart
We still believe the Ethereum blockchain has more use-cases than Bitcoin. We also believe that fundamentals ultimately drown out short-term trends. As a result, our $1,000 Ethereum price forecast for 2018 is unchanged.