- Bitcoin has plunged more than 30 percent since hitting a year-to-date high
- Growing cryptocurrency ecosystem is the reason for the fluctuating crypto market
- This, according to research by Indexica
According to a Bloomberg report published on October 11, 2019, premier cryptocurrency bitcoin (BTC) is no longer the driving force of the digital currency market space. The latest movements in the price of BTC are said to be the result of the fluctuation in the price of competing coins or in proper crypto jargon – altcoins.
Bitcoin Losing Its Grip Over the Crypto Market?
Bitcoin has had nothing short of a dramatic roller-coaster ride throughout the majority of 2019. The top cryptocurrency started the year on a dubious note but has come a long way since then. Today, in October 2019, BTC is trading at sub $8,300 level, leaving succeeding green bars on daily candlestick charts. That said, the volatile movement of bitcoin continues to remain a mystery for financial and economic stalwarts across the globe.
Compared to the first half of 2019, the price of BTC has taken a huge nosedive during the latter half of the year. The premier cryptocurrency which was trading at approximately $11,000 mark around May and June 2019 is now reduced to a price of roughly $8,300 at the time of writing.
Wall Street juggernauts like JP Morgan Chase & Co. opine that the much-hyped Bakkt exchange is the likely culprit behind the sudden fall in bitcoin’s price.
As reported by Blockchain Reporter on September 23, 2019, Intercontinental Exchange, the parent firm of the New York Stock Exchange (NYSE) finally unveiled Bakkt which gives its clients to settle crypto-derivate financial instruments like bitcoin futures with physical BTC.
Indexica Hints at Other Indicators
Contrary to the aforementioned claims, alternative data provider Indexica states that bitcoin’s fall in price could be attributed to the growing cryptocurrency ecosystem instead of the currency itself.
The Bloomberg report reads in part:
“According to their latest findings, Bitcoin’s price moves are being driven by competing for digital currencies and new blockchain technologies. Indexica’s study showed talk around Mastercard’s partnership with R3 to develop a new blockchain payment system as a strong driver of recent returns.”
This behavior is a welcome sign for the industry and is a testimony to the fact that BTC is, in fact, coming of age, says Zak Selbert, CEO, Indexica. Selbert said:
“Now that Bitcoin is a big kid, anything can make it move, just like anything can make gold or a G-10 currency move. Bitcoin is part of the financial landscape in a very intertwined and mature way.”