Bitcoin managed to escape much of the downward drift that has afflicted most cryptocurrencies today. In the most recent 24-hour period, bitcoin’s price fell 2.82 percentage points to $2,367, according to coinmarketcap.com.
Only 10th ranked BitConnect, with $387.854 in market capitalization, fared better than bitcoin in the 24-hour period, only dropping 0.57 points.
Bitcoin, with a market cap of $38.829 billion, extended its lead over second place Ethereum at $18.714 billion. Bitcoin has extended its lead since June 16, when Ethereum commanded 31.93% of the total crypto market and bitcoin had 38.44%. On July 10, bitcoin extended its dominance to 45.56% compared to Ethereum’s 23.6%, according to coinmarketcap.com.
On Monday, the total cryptocurrency market cap fell below $90 billion for the first time in July. This market cap evaporation continued on Tuesday, as the total value of all cryptocurrencies plunged as low as $77 billion, a number not seen since late May. At present, the market cap is $84 billion.
Most smaller cap cryptocurrencies crashed today following the U.S. trading session, and Ethereum breached a prior correction low, spiking below $200, triggering a string of stop orders. Bitcoin is still roughly following the projection for a correction, and until the base support near $2,000 holds, a bull market remains intact in bitcoin.
Bitcoin has surged to historic value while its volatility has receded, during a time when recent events might have caused bitcoin to lose value, such as the Securities and Exchange Commission rejecting a bitcoin ETF.
Several observers have argued that a big reason for bitcoin’s popularity is that it has advantages over fiat currencies.
A big reason for bitcoin’s popularity, according to several observers, is that many people distrust government currency and want to use bitcoin as a hedge or an alternative payment tool when government currency doesn’t efficiently perform these functions. Millennials are investing in bitcoin at a faster rate than other consumers.
Bitcoin does not rely on a government entity that politicians can manipulate. Instead, trust is placed in the decentralized order of the parties that verify bitcoin transactions.
Global and national crises will continue to support bitcoin’s popularity. Instability caused by the euro, Brexit and the rising ratio of debt to gross domestic product in western nations undermines the value of established currencies.