Economist and crypto analyst Alex Krüger says Bitcoin looks like a stronger bet than ever when compared to the vast majority of the altcoin market.
Krüger notes that most altcoins have struggled to keep pace with Bitcoin in 2019, as BTC’s dominance swelled from 51% on January 1st to its current level of 66%, according to the latest data from CoinMarketCap at time of publishing.
“Most alts have become asymmetric bets with an unattractive return profile, as alts consistently underperform BTC on down days, and only sometimes outperform BTC on up days.”
The analysis aligns with a new report from Coin Metrics, which notes the struggle altcoins have faced in the last month.
“Although asset prices are substantially higher than the lows reached early this year, compared to Bitcoin, most assets have participated less strongly on the upside and more strongly on the downside.
Over the past month, almost all assets have experienced a steep correction in price with some major assets down over 40%. During this volatile period of price discovery, Bitcoin has remained nearly unchanged, with a decline of only 2% in the same period.”
Although the altcoin market is historically tied to the price of Bitcoin, it’s long been notoriously difficult to predict when altcoins will rise in – especially during periods of heightened Bitcoin volatility. When BTC is pumping, altcoins often drop as traders move their assets into BTC. And when the price of BTC dips, altcoins tend to drop some more.
Despite Bitcoin’s rising dominance, a number of altcoins have surged this year. Here’s a look at the top 10 coins of 2019 according to Messari’s crypto price tracker OnChainFX.