Crypto Sell-off Leaves Bitcoin Dominant, Market Optimism Remains Rampant

While the cryptocurrency markets continue to plunge, Bitcoin’s dominance in terms of market capitalization is at its highest point in 3 months.

Bitcoin’s market cap is sitting at 55.1% dominance and growing according to data published by CoinMarketCap.com. This level of dominance is staggering over the next top coins including XRP at 11.3%, Ethereum at 8.51%, Bitcoin Cash at 1.64%, and Litecoin at 1.32%.

The primary reason for Bitcoin’s recent rise in dominance is due to the overwhelming fear in the markets. Causing cryptocurrency investors and traders alike to sell their altcoins and move into the more stable king that is Bitcoin.

As for the total market cap of cryptocurrencies, it’s hovering around $110 billion but slowly dropping as the bear market shows little sign of letting up. Compared to the all-time highs of $825 billion back in January 2018, the crypto market cap has decreased by more than 86%.

As reported earlier, the cryptocurrency storm is still not over and we can expect to see lower lows, and a continued rise in Bitcoin’s dominance due to investors fleeing to the king for protection.

But There’s Still Optimism for the Market

While the crypto market is rather gloomy and market participants continue to capitulate, there are notable people in this industry who remain optimistic.

Take for example Mike Novogratz, the founder of Galaxy Digital and former Goldman Sachs partner, who reportedly lost over $136 million due to crypto over the last 9 months yet remains confident in crypto.

During a recent interview with Bloomberg, Novogratz admitted that he didn’t expect Bitcoin to drop below the $6,000 level, and he is probably not alone.

When asked about initial coin offerings (ICOs) and whether they would come back, Novogratz proclaimed that he highly doubts it. He explained that there has been a lot of fraud from ICOs generating hype and taking people‘s money, only to offer them nothing in return.

He then mentioned the SEC is aware of this and slammed the breaks on the entire ICO market. However, he also explained that the SEC would rather foster innovation in this market than kill it.

Novogratz then said:

I think you’ll see a market for security tokens—a real estate portfolio that gets tokenized, for example….These aren’t things that go from $1 to $1,000. They’re things that yield 14 percent, and they’ll be sold to qualified buyers. That sounds a heck of a lot less sexy, but you’re going to see that business grow.

Continued Development Despite Prices

Tyler and Cameron Winklevoss — the founders of Gemini, a licensed and regulated cryptocurrency platform in the US — proclaimed in an interview with Bloomberg, “we’re totally at home in winter.” This statement was regarding the extensive cryptocurrency bear market which some refer to as “crypto winter.”

During the interview, the Winklevoss brothers also mentioned that they had built and launched a mobile crypto trading app with a new investment vehicle. The app allows users to buy and sell crypto and view real-time and historical market prices for  Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and ZCash (ZEC).

The app includes a recurring buy feature and “the Crytoverse,” a basket of cryptocurrencies weighted by market cap that is bought with a single order.

Commenting on the app, the Winklevoss brothers said:

A lot of our decisions have perhaps given off a perception that we’re more institutional-based. The reality of the situation is that we have a diverse customer base. And the retail story is just beginning.

Final Thoughts

Though cryptocurrency prices are crashing and some investors are capitulating, the amount of optimism surrounding the market is still evident.

Notable figures in the cryptocurrency industry continue to develop and build the industry, and remain confident in the future of cryptocurrency and blockchain.

It’s important to remain level-headed in times like these, and take a step back from the price and look what’s going on in the background.

What are you doing this crypto winter? Are you focusing on the price or on the developments in the space? Let us know in the comment section below.