As everyone knows, the price of Bitcoin has a profound effect on the entire crypto market, and as the price of the world’s biggest cryptocurrency rose steadily over the first half of 2019, the entire crypto market profited. However, since July, Bitcoin has definitely entered choppier waters, and now the momentum has gone out of its sails. That being said, it is Ethereum, long considered to be the only possible rival to Bitcoin, which has found itself in the middle of a free fall.
Will Ethereum Recover?
More importantly, Ethereum (ETH) has declined at an alarming rate when its price is correlated to that of Bitcoin, and experts believe that it could prove to be a bad development for the many altcoins.
Ethereum had long been regarded as the main alternative to Bitcoin, but that is clearly no longer the case, and experts now believe that holders of other altcoins might not have to brace for further losses in their portfolios. Since the bull run that took place from January through to June was primarily fuelled by Bitcoin, it is only natural that BTC has become far more important in the world of crypto than it has ever been. Consequently, more money has been taken out of cryptos like Ethereum and other altcoins to be invested in Bitcoin.
The weakness in the altcoin market can be best demonstrated by each coin’s respective performance in July. Although it is true that Bitcoin faced a lot of challenges due to the announcement of Facebook’s Libra and comments from powerful regulators, its price did not drop as much as that of many altcoins. Bitcoin ultimately dropped by 6.8% during the course of the month. However, the situation was totally different for altcoins like Ethereum as they gave up as much as 20% through the course of July. If such a trend continues, then it is almost certain that more losses are in store for altcoins.