Bitcoin lost upwards of $800 in the past 24 hours, marking a sharp decrease of around 7 percent on the day. Conditions like these would typically leave room for altcoins to thrive, but this hasn’t been the case. The entire market is bleeding heavily, while Bitcoin has managed to retain a high dominance rate of around 69 percent.
Bitcoin Crashes; Altcoins Follow
In the past 24 hours, Bitcoin has lost around 7 percent, shedding $800 and losing about $13 billion of its market capitalization. As CryptoPotato reported, there are a few important levels to watch now that the price has broken below $10,000. They include the current support level of $9,400-$9,500 as well as $9,200.
However, looking at the overall market conditions, it appears that Bitcoin has dragged all alternative cryptocurrencies down with it while managing to retain its relatively high dominance rate which is currently standing at 69 percent.
As seen on the infographic, the entire market is heavily in the red, with BINANCE Coin (BNB) leading the downward momentum with losses of upwards of 12 percent. Litecoin and Ethereum are closely behind, declining by 10% and 9.3% respectively.
Things are looking a bit better when trading against Bitcoin, even though BNB is still down by quite a lot – 6% on the day. XRP has managed to hold strong against the falling BTC, gaining 1.4% amid this bloodbath.
It’s worth noting that Bitcoin has managed to retain its dominance, which means that altcoins have been unable to boom even when the leading cryptocurrency has fallen hard.
Why Are Altcoins Unable to Recover?
While there are surely many reasons why the altcoin markets have struggled to mark any serious gains in the past three months, their lack of utility is undoubtedly among the leading factors.
Commenting on this was Sasha Ivanov, Founder and CEO of Waves, who tweeted that many utility tokens lack utility and that their approaches need to be reconsidered.
The problem of altcoin market now is that utility tokens don’t really have much utility, including protocol tokens. I guess it’s time to rethink the approach in terms of actual utility of the #blockchain platforms we create. New approach to #DApps economics is badly needed.
— Sasha Ivanov (@sasha35625) August 26, 2019
On the other hand, as CryptoPotato reported, this lack of utility doesn’t really seem to concern many investors. According to a recent Twitter poll, 80% of participants had bought altcoins solely for the promise of huge returns.
One can easily see how this is a problem. While it’s easy to understand why someone would invest in a token solely for the expected return, this automatically turns said asset into nothing but mere speculation.
This is, perhaps, the reason why Bitcoin has managed to establish itself as the leader in the market, as it has already proven its utility.