Traders Turn on Bitcoin Before Halvening
Just a few days before Bitcoin halvening, a strange phenomenon starts happening in the crypto market. While all cryptocurrencies show gains against the US Dollar and Euro, they also show losses against Bitcoin.
Why does all this happen?
Bitcoin is the dominant element in the crypto market, showing the direction for the entire market as the Bitcoin dominance is around 67 %. Bitcoin, in waiting for halvening, has concentrated investor’s attraction as they wait for the deflationary move to rise its scarcity, and its price accordingly.
This fact shows that Bitcoin’s demand is rising not only from investors with little or no investments on Bitcoin, want to increase their positions with bigger profits’ expectation while investors with diversified portfolios in other cryptos increase also their positions.
This dynamic could last some days or even months as the market stays positive towards Bitcoin. As for the rest cryptocurrencies, it’s expected to follow Bitcoin’s trend according to the correlations with it or diversify themselves through their fundamentals.