20:27Ether, Dogecoin gains see Bitcoin’s share of crypto market fall
Parabolic jumps in digital tokens such as Ether, Dogecoin and Binance Coin are outshining Bitcoin, prompting more questions about whether that segment of the cryptocurrency sector is ripe for a reckoning.
The rallies have contributed to a slump in Bitcoin’s share of the $2.6 trillion crypto market to 43% from about 70% at the start of 2021, a metric that for strategists at JPMorgan Chase & Co. and DataTrek Research LLC may be a warning sign of investor excess in a range of digital tokens.
Plenty of commentators have been fretting for some time that a stimulus-fueled peak is at hand in cryptocurrencies – only to see them rally even more. But the worry is hard to shake in a sector that defies traditional investment analysis.
The share of the largest cryptocurrency could be declining because investors are getting more comfortable with a wider array of tokens. Alternatively, retail traders may be chasing quick, speculative gains.
“Even if you don’t invest in the space, this is worth tracking,” DataTrek’s Colas wrote in a recent note. He added that with more than $2 trillion now invested in virtual currencies, “a meaningful reset lower could also affect more traditional financial assets like equities.”
For the JPMorgan team, the possible retail-driven froth in cryptocurrencies is a reminder of late 2017, when a crypto boom peaked.
Dogecoin – which started as a joke in 2013 but is now a dominating Internet meme and sitting on a 20,000% advance in the past year – captured the headlines over the weekend.
First off, billionaire Elon Musk cited the token again, this time in a much-touted television appearance on the U.S. show Saturday Night Live. Later, it emerged that the cryptocurrency is apparently being used to pay for a lunar satellite launch with SpaceX, Musk’s commercial rocket firm.
Dogecoin Used to Pay for Lunar Satellite Mission With SpaceX
Bitcoin was up 1.7% Monday at about $58,887 as of 8:30 a.m. in London. The largest cryptocurrency remains some way shy of April’s record of $64,870 after a pullback.
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