Bitcoin costs have been performing well lately, following a stable uptrend in recent weeks as they climb to the record high they set this year.
The world’s largest cryptocurrency through market capitalization reached $51,037. 01 today, its point since May 14, according to figures from CoinDesk. At this point, it had risen more than 75% since it hit a local low on June 22.
While it might sound impressive, other leading virtual currencies have recently eclipsed Bitcoin with its incredible performance.
Ether, the second largest virtual asset in terms of market value, has more than doubled in recent months, and Cardano’s ada token has tripled in the same time, according to CoinDesk value data.
Ether hit $4,026. 93 earlier in the day, after more than 130% after falling to a recent low of $1,711. 23 on June 22, according to other figures from CoinDesk. year.
Cardano’s ada token enjoyed even more compelling gains, hitting an all-time high of $3. 10 yesterday, when it rose more than 200% after hitting a local low of $1. 00 on June 22.
[Editor’s note: Investing in cryptocurrencies or tokens is highly speculative and the market is largely unregulated. Anyone contemplating this will be ready to lose their entire investment. ]
Amid those more recent developments, some market place watchers are wondering if Bitcoin is still the leader of the market place it has been for years.
“For the peak of its history, Bitcoin has acted as the reserve currency of the crypto ecosystem, leading the direction up or down for everything else,” said Jesse Proudman, co-founder and CTO of crypto hedge fund Strix Leviathan.
“In recent months, we have noticed a marked shift in this and over the following week we are witnessing the start of a blank break where Bitcoin is now following the movements of other currencies such as Ethereum,” he said.
Jeff Dorman, principal investment officer at Asset Arca, put it a little more directly.
“Bitcoin no longer dominates the markets,” he said. It has shown poor capture and poor capture throughout the year, meaning it doesn’t keep up speed with rallies AND sells more than other assets in recessions. “
“The most important thing is that everyone (except Americans and companies that only count on the good fortune of Bitcoin) are beginning to perceive that Bitcoin is not linked to the good fortune or mistakes of other assets. They are absolutely different.
“Unlike the early days of virtual assets when Bitcoin was the only game in town, this asset elegance has now evolved far beyond cryptocurrencies,” he noted.
“There are new sectors that have much faster expansion trajectories, such as DeFi (decentralized finance), gaming, sports, NFT, and Web 3. 0, all of which have absolutely other symbolic points and attributes that contribute to their performances. “
The “maturation” of Bitcoin
Jesse Knutson, Vice President of Monetary Products at Blockstream, presented a more positive view, weighing how the world’s largest virtual currency continues to grow.
“What we’re seeing here is the maturation of Bitcoin,” he said.
“Over the more than 12 months, there has been an amount of institutional and even sovereign interest in space,” Knutson said. “This interest has been directed almost exclusively at Bitcoin. “
“The world’s largest asset managers, corporations such as Capital, Fidelity, Blackrock and Tudor are looking to increase their exposure to Bitcoin, but they are still largely limited to proxies and indexed derivatives,” he noted.
“Morgan Stanley and JPM are launching Bitcoin products engaged with personal customers, and countries like El Salvador are turning to Bitcoin only as a growth engine, but also to solve monetary infrastructure problems. “
“Given the big shift in market participants this year, I think it makes sense to see some divergence in value from time to time between Bitcoin and more speculative virtual assets,” Knutson said.
“The macro context is incredibly favorable for Bitcoin’s investment thesis and there is a wave of cash accumulation that I think will probably struggle to have compatibility with what is still a small elegance of assets across institutional and sovereign standards. “
Continuous evolution of the market
Other analysts have presented other perspectives, explaining how the broader virtual asset markets will mature over time.
“The elegance of crypto assets is perceived through many as a Bitcoin-led monolith,” said Amber Ghaddar, co-founder of decentralized capital marketplace AllianceBlock.
“Our thesis has been that even though Bitcoin is the star child of cryptography, we deserve to expect a fork and minimal long-term correlation. “
Over time, it expects individual virtual assets to derive their values less from hypotheses and more from their own characteristics.
“Prices are made up of two details: a basic detail and a speculative detail. The speculative component is the vital maxim and is based on sentiment, expected long-term uses and scalability,” Ghaddar said.
“We expect the core component, seamlessly calculated through network knowledge, to take on a greater share of the value as the new Layer 1 blockchains begin to mature and/or go live. “
Jalak Jobanputra, founder and managing spouse of Future Perfect Ventures, also spoke about the growing divergence between bitcoin and virtual assets.
“We are strongly in a multi-cryptocurrency world and that each coin will ultimately be evaluated based on its specific use case,” he said.
Bitcoin has a price store and a hedge opposed to inflation, while Ethereum has the currency of the DeFi and NFT applications and therefore, in many tactics, the reserve currency for Web 3. 0. I expect Bitcoin to adhere to more macroeconomic trends as it does lately. . »
“This is an exciting transition, as we see that some of those top-tier cryptocurrencies make sense beyond being used as equipment for speculators. “
Disclosure: I bitcoin, bitcoin cash, litecoin, ether and EOS.
I am a publisher and monetary with a wisdom forged in asset markets and investment concepts. Currently, I am vice president of content for the quantum money services company.
I am a publisher and monetary with a wisdom forged from asset markets and investment concepts. . Author of more than 500 publications, my paintings have been published in media such as Fortune, Washington Post, CoinDesk and Investopedia. Previously, I created all the business finance education courses for a corporation of over three hundred people. at industry events around the world and I edged monetary literacy speeches for Mensa and Boston Rotaract. Lately I own Bitcoin, Bitcoin Cash, Litecoin, Ether and EOS.