Bitcoin, the largest market-price cryptocurrency, is losing its influence as the driving force of the digital currency universe, more than 35 percent off its 2019 peak through Tuesday, as illustrated in a new Bloomberg article.
This is the product of a "maturation" of the electronic money "ecosystem," according to several industry analysts. Bitcoin's price movements were influenced by emerging digital currencies and new blockchain technology focused on their latest findings.
While other market watchers related the rough trip for Bitcoin in 2019 to disappointments such as fresh futures contracts from International Exchange Inc., an aggregation of technical bearish signs, and other headwinds, Indexica's alternate data provider pointed to another downward engine.
According to Bloomberg, Zak Selbert, chief executive at Indexica, describes Bitcoin's vulnerability to competitor growth as "just another indicator of an era to come."
Indexica observed in a new development that the most statistical indicator for Bitcoin was its "quotability," which revealed that it was more frequently discussed in tandem with more traditional currencies.
Based on data from Aug. 1 through Oct. 1, the latest findings support the notion that the problems in Bitcoin had more to do with an evolving blockchain community than the individual coin itself.
Indexica referred to specific instances such as the news of Mastercard Inc.'s agreement to develop a blockchain platform for cross-border transactions with enterprise software provider R3.
"What can make it move now that Bitcoin is a big kid, just like anything can make it move in gold or a currency move in the G-10," Selbert said, adding that "Bitcoin is very entangled and a sophisticated part of the financial ecosystem."
As this developed, Bitcoin's price fell to as low as $7,918.27 late Wednesday on CoinDesk, down roughly 4.74 percent from the previous day.
At this point, at its lowest mark since October 7, the digital currency has been selling, more CoinDesk figures revealed. The cryptocurrency later recovered, rising marginally to sell at $7,974.95.
Although Bitcoin accounts for most of the wealth of the cryptocurrency community by market value, as illustrated in another Bloomberg article, it is not the most commonly utilized cryptocurrency.
Tether has the largest daily and monthly trading volume out of electronic currencies, although it's market value is about 30 times lower, according to CoinMarketCap.com information.
For anyone, forecasting the future price of bitcoin is a tough game. Only bulls who expect the cryptocurrency to bounce back from its decline, with some still waiting to get momentum for the upcoming Bakkt futures market, should be careful to buckle up for what's expected to be a bumpy ride.
