Bitcoin continues surging higher and higher. The past month has been one of Bitcoin’s best performing periods on record. The price passed £5000 ($6528) yesterday (1st November 2017) in the wake of CME Group announcing their plans for a Bitcoin futures market later this year.
Although it’s good news for Bitcoin ‘HODLer’s’, many of the altcoins (Bitcoin alternatives) prices have plummeted. The consensus among many online is to sell of altcoins in order to ride the incredible growth of Bitcoin.
Often seen as the golden standard of the crypto world, Bitcoin is in many peoples minds always going to come out on top. With such an insane number of new altcoins, many competing for the same market share, it’s only a matter of time before the ‘crypto bubble’ does deflate.
Could we be about to witness the ‘bubble’ pop?
With big names like CME Group, the world’s largest futures market provider getting behind Bitcoin, the interest has understandably grown. A big mental barrier preventing many people interested from actually investing, was the fact that Bitcoin has been in the news for all the wrong reasons. With such a reputable company welcoming the cryptocurrency however, some new investors are beginning to look favourably at Bitcoin as a legitimate asset.
Often, investors of altcoins are in it solely for profit, and with Bitcoin rising so rapidly, it’s understandably many of them will have cut their losses and traded back into Bitcoin, forcing the price even higher.
In the end, it’s likely there will only be a handful of the altcoins which exist today that will actually survive and thrive in the crypto world. Bitcoin’s growth will play a huge part in the ‘kill off’ of some of the under performing, and sometimes straight up unlucky altcoins.
This may be the beginning of the end for some of them. It’s an interesting period and while many portfolios are in the red, will they be able to recover? In such a competitive and unpredictable market, it’s simply impossible to say. If Bitcoin does continue rising, more and more people will start pulling money out of their beloved altcoins, leaving only the ‘hardcore’ believers keeping the price afloat.