Bitcoin (BTC) News – Are Altcoins the reason why Bitcoin (BTC) has been moving downwards?

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Many investors and traders are figuring out the cause of falling Bitcoin (BTC) prices. Bitcoin (BTC) has fallen around $ 20,000-$ 3600 currently. The fall has been pretty drastic. The reasons are still not clear apart from the fact that it had run up a lot. That is why; investors are trying to find out whether Bitcoin (BTC) has fallen due to any fundamental factors.

Are Altcoins the reason why Bitcoin (BTC) has been moving downwards?

According to the St Louis Federal Reserve, the future of Bitcoin (BTC) has three options. The first one is where it heads to 0. The second one is infinite appreciation. The third one is somewhere in between. They think that the problem with Bitcoin (BTC) is that there are more and more alternatives cropping up. As the supply is increasing in cryptocurrencies and Altcoins, Bitcoin (BTC) is becoming more and more volatile.

According to them with Bitcoin (BTC) still a dominant cryptocurrency, it will trade at a higher value. However, with more and more alternatives, it is becoming more and more volatile. At the same point in time, many believed that the better features in blockchain would be offered by Bitcoin (BTC) over some time. The problem is that the same has not happened. The blockchain of Bitcoin (BTC) does not offer decentralized applications or a proper infrastructure for developing smart contracts. That is why; the evolution of the blockchain of Bitcoin (BTC) is taking place at a very slow pace.

Another problem with Bitcoin (BTC) is that it is highly liquid. As the markets are open 24 hours and round the week, the liquidity and volatility are on the higher side. The volatility is causing fear. Owing to this very reason, it is fallen significantly. While some of the assumptions of the Federal Reserve of St Louis might turn true but the same cannot be said about all of them.

According to them, with the number of Altcoins increasing, Bitcoin (BTC) will see them gain value. When you add this to the fact that it is advancing its blockchain technology, it becomes even more evident that it might not be able to head to their peak levels once again. What they are saying is true, the increasing number of Altcoins have had a significant negative impact on the prominence in the value in Bitcoin (BTC). It is undoubtedly the pioneer cryptocurrency, but it is not the only credible cryptocurrency currently due to the vast number of Altcoins available.

About Priya 131 Articles
I am an IT engineer by qualification and like to explore the crypto and blockchain space in my free time.

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