Stack Funds, an issuer of crypto access products that include trackers, indexes and structure vehicles for institutions, has predicted that bitcoin will bounce back to its former heights in the nearest future, PUNCH reports.
According to PUNCH, In January, Bitcoin had a 73.5 per cent share of the crypto market. This week, it has only a 40.5 per cent share of the market.
This figure represents a three-year low since May 2018. Although bitcoin’s dominance is waning, the total market capitalisation has gained about 40 per cent within the same timeframe.
The company in the report, said, “We believe the rotational playbook has reversed as dark clouds loom over the markets.
“We are expecting investors to cycle back into Bitcoin as uncertainties increases as the markets undergo another reset. Hence, a bounce in Bitcoin dominance should occur, further supporting Bitcoin’s price in the short-term.”
Elon Musk’s comments about Tesla’s withdrawal of support for bitcoin payment and a Reuters article claiming that China had banned companies that provide cryptocurrency services had caused the price of bitcoin to tumble down.
“The digital currency has declined 36 per cent from May’s top of $59,500, breaking the critical $50,000 and $40,000 support lines.”
Since May 19 Bitcoin, Ethereum, and Dogecoin have liquidated over $500bn worth of investments.