All top Cryptocurrencies seems to be favourite of the worldwide crypto players as 97 out of the top 100 cryptocurrencies by market cap solidly in the green. Bitcoin (BTC) continues to climb steadily over the $7,000 mark, seeing 2.52 percent gains over the past 24 hours. Bitcoin is trading at about $7,216 at press time, up 7.2 percent over the past week.
Top altcoin Ethereum (ETH) has experienced similarly modest growth today, with its price up just under one percent over the 24 hour period. Ethereum is trading at $275 at press time, up 1.5 percent over the past 7 days, but down a jolting 41 percent on the month.
When Bitcoin plunged close to 40% back in the middle of December, Ripple took off, quadrupling in value in a matter of days to take the second position among cryptocurrencies in terms of market capitalization. Meanwhile, other cryptocurrencies rallied in sympathy. Like Ethereum, Litecoin, NEM, Siacoin and Bytecoin — to mention but a few.
Then, as Ripple and other cryptocurrencies corrected in the last couple of days, Bitcoin rallied. Total market capitalization of all cryptocurrencies has reached $238.4 billion points for the first time since August 8 and is continuing to grow, seeing a slight spike during the hours to press time.
According to Kyle Samani, cryptocurrency expert, and Forbes contributor, “The crypto market is 99% noise right now. In general, we see rotations between BTC and alts. First half of 2017 was alts, 2nd half was bitcoin, seems like we’re back in an alt cycle.” He further added,”I wouldn’t read too much into it.”
There’s a good explanation for the rotation among Bitcoin, Ripple, Ethereum and other cryptocurrencies. Some cryptocurrency exchanges require Bitcoins to pay for coin transactions. So, investors who already own Bitcoins have to sell them to execute those transactions.
Rotation from one coin to another isn’t new to investing. It has for years been applied on Wall Street, where investors rotate funds between “defensive” and“cyclical stocks,” at times when interest rates, i.e. the “opportunity cost” of money, remain low.
Brian Kelly of CNBC’s Fast Money predicted that the approval of a bitcoin ETF will likely come in February 2019. Brian pointed the agency’s qualms over inadequate resistance to fraudulent and manipulative acts and practices in an insufficient size BTC derivatives market and the largely unregulated underlying spot market.