The Rise of Bitcoin: A Warning for Altcoins
The recent surge in Bitcoin’s market dominance has sent shockwaves through the cryptocurrency world, with many wondering what this means for alternative coins. Fold CEO Will Reeves has issued a stark warning, suggesting that Bitcoin’s dominance is here to stay.
Bitcoin’s Fundamental Strength
Reeves points to the recent all-time high reached by Bitcoin, attributing it to a combination of high institutional demand and limited supply. He notes that this supply shock is a key driver of the current price surge, highlighting the fundamental strength of Bitcoin in the market.
“This is what happens when massive demand meets the finite supply of Bitcoin. And what we’re seeing right now is the supply shock in motion. So I’d certainly say what we are seeing is the fundamentals of Bitcoin in play…”
Altcoins Face an Uphill Battle
As Bitcoin’s dominance continues to rise, Reeves believes that alternative coins will struggle to compete for capital. He sees Bitcoin as the “apex asset,” with its neutral and established track record setting it apart from the speculative nature of many altcoins.
“Frankly, I think [altcoins] will remain speculative. Bitcoin dominance is at 60% and rising. I think what we’re seeing is an inevitable trend towards the signal, the apex asset. The issue is that Bitcoin is the only credibly neutral digital asset that is in issuance.”
The Unstoppable Force of Bitcoin
With Bitcoin trading at $117,613 and its dominance at 64.58%, Reeves believes that this trend is irreversible. He points to the influx of institutional capital and the growing mainstream acceptance of Bitcoin as key drivers of its continued dominance in the market.
“Ultimately, what we’ve seen is something that can’t be reversed.”
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