Bitcoin Is No Longer Seen As The Driving Force Of The Current Market

After plunging more than 30% since hitting a year-to-date high, the most dominant cryptocurrency is trading in a slow momentum and is held back at the $8,300 mark. The fact that the cryptocurrency retraced a lot is clear, but explaining how it lost momentum in the second half of the year is anything but clear. As it stands, Bitcoin is no longer the face of the new potential bull run or the driving force that may lead to new market-wide heights.

JPMorgan Chase & Co. and others have recently pointed to Intercontinental Exchange (ICE) and its new futures contracts as well as an unwinding of long positions as some of the clear indicators for the nosedive. Others think that the latest Bitcoin news have shown a buildup of technical bearish signals as setting off its summer swoon.

According to Indexica and their predictive index built on data from August 1 through October 1, Bitcoin’s fall has less to do with the currency itself and more to do with the growing cryptocurrency ecosystem. 

According to the CEO of Indexica, Bitcoin’s sensitivity to the development of competitors is why people are certain that Bitcoin is no longer a leader of a new bull run. Indexica also found that Bitcoin’s strongest predictive measure was “quoteability” which showed that it was the most often talked about in conjunction with more traditional 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,” said Selbert. “Bitcoin is part of the financial landscape in a very intertwined and mature way.”

As it stands, Bitcoin is trading at $8,346 and the latest crypto news bring a mix of reds and greens on the marketplace. The 24 hour trading volume is stable at $46 billion and the dominance of Bitcoin has fallen to 66.8% – another sign that Bitcoin is no longer dominant in every single way.

Among the tokens which are rising today we have Bitcoin SV (BSV) which managed to grow by 4.43% reaching $89.21 – and Binance Coin (BNB) which surged by 2.53% to a price of $17.46. The biggest loser, on the other hand, remains Chainlink (LINK) with its price of $2.54 following a 5.36% decline.