Bitcoin came perilously close to breaking below $6,000 over the weekend, trading to $6,008.68 on Saturday morning in New York.
The move south pushed bitcoin’s total loss for August to 21%, and left it in danger of making a fresh 2018 low, a level crypto guru Barry Silbert said he did not think it would breach when speaking at the CNBC Delivering Alpha conference on July 18.
However, owners of bitcoin breathed a sigh of relief as the world’s biggest digital currency held the $6,000 level, before trading higher through the latter half of the weekend.
After opening in the green Monday, bitcoin
has surrendered those gains, last trading at $6,197.43, down 2.2% since Sunday at 5 p.m. Eastern Time on the Kraken exchange, putting the $6,000 level back on the radar.
Bitcoin dominance above 50%
The one bright spot for owners of bitcoin is that it continues to outperform other digital currencies, known collectively as altcoins. According to data from CoinMarketCap, bitcoin now makes up 52.2% of the total cryptocurrency market, its biggest share since Dec. 18 when the price of bitcoin was above $18,000.
“A lot of new projects and ICOs (initial coin offerings) are dropping off and we are seeing a lot of those funds flow back into the established cryptocurrencies like bitcoin,” said Mato Greenspan, senior market analyst at eToro.
However, bitcoin has a long way to go before it regains its record 95.6% share of the market. “Bitcoin’s pre-eminent role remains, but with the introduction of new and compelling cryptos, you can see its influence begin to wane in late 2016. As markets mature, competition stiffens, and consumers have increasing alternatives,” wrote Kevin Davitt, senior instructor at Cboe Global Markets.
Altcoins slump further
Altcoins continued to underperform Monday. Ether
is the worst-performing altcoin, trading down 10.3% to $286.95, Bitcoin Cash
is down 7.1% to $532.50, Litecoin
has lost 5.8% to $56.07 and Ripple’s XRP
has lost 4.1%, trading at 29 cents.
After a volatile weekend in spot markets, futures have tracked spot lower Monday. The Cboe Global Markets Inc.’s August contract
is down 2.8% at $6,200 and the CME Group Inc.’s August contract
is trading down 3.4% at $6,175.
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