Bitcoin Price Is Driven by Competing Altcoins and Novel Blockchain Technologies: Indexica Study

Libra Coin News
Fri, 10/11/2019 - 16:42
Alex Dovbnya
Indexica shows that Bitcoin should be treated as just another cryptocurrency
Cover image via www.123rf.com
Contents

According to a study conducted by alternative data provider Indexica, Bitcoin no longer rules the roost in the cryptocurrency market despite its high dominance. 

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Bitcoin is not alone 

The BTC price endured a massive plunge to the $8,000 level after the Bakkt launch. This made many wonder whether Jeffrey Sprecher's new venture put a spanner in the works for Bitcoin bulls. 

As reported by U.Today, JPMorgan analysts suggested that Bakk's underwhelming trading volumes could have had a negative impact on the market. However, Indexica invalidates this theory by showing that Bitcoin's price woes have more to do with rivaling cryptocurrencies and innovative Blockchain technologies.

For instance, Mastercard made an announcement about its partnership with enterprise-oriented blockchain firm R3 on Sept. 11. According to the study, the talk about this tie-up made the Bitcoin price surge above the $10,400 in the following days. 

Related
Bitcoin Price Could Return to $8,000 After Failed Bullish Breakout: Analyst

The silver lining

Indexica Zak Selbert clarified that the fact that competing altcoins can influence the price of Bitcoin is not necessarily bad news for the top cryptocurrency. He told Bloomberg that the crypto king is now treated as "a big kid" whose price can be moved by anything, comparing BTC to gold and other fiat currencies. 

“Now that Bitcoin is a big kid, anything can make it move, just like anything can make gold or a G-10 currency move.”   

Earlier, Indexica alleged that Bitcoin turned into a mature asset given it started to attract the attention of high-brow academics and market analysts. 

 

Can altcoins influence the price of the crypto king? Share your take in the comment section!  

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.


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