[Bitcoin Now] Weakening Dominance... Possibility of Cryptocurrency Market Crash Raised

As of 2:18 PM on the 11th, Bitcoin records 69.64 million KRW
JPMorgan: "Altcoin surge is a typical bubble"

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] As speculative altcoins surge, the dominance of Bitcoin, the representative cryptocurrency, is weakening. This has raised the possibility that the entire cryptocurrency market could crash.

According to the domestic cryptocurrency exchange Upbit, as of 2:18 PM on the 11th, Bitcoin recorded 69.64 million KRW, down 1.77% from the previous day. It fell back to the 69 million KRW range for the first time in three days since the 8th.

Bitcoin's dominance has also weakened. According to the cryptocurrency market data site CoinMarketCap, as of 9 AM on the 11th, Bitcoin accounted for 44.38% of the total cryptocurrency market capitalization. This is a significant drop from the 70.44% recorded on January 1st.

During the same period, although Bitcoin's price more than doubled, its dominance weakened due to highly speculative altcoins. On January 1st, Dogecoin's market cap share was 0.08%, but on this day it increased 31 times to 2.48%. Dogecoin, known to have no technical value or fixed issuance volume, rose 514.05% over the past month. The market cap share of altcoins other than Ethereum and Dogecoin also increased from 18.5% to 33.68% during the same period. In contrast, Ethereum, which is evaluated to have high technical capabilities and recently surpassed 5 million KRW, only increased its market cap share from 11% to 19.44%.

This has raised the possibility of a market crash. According to the US economic media Bloomberg on the 10th (local time), US investment bank JP Morgan said in a report, "The surge of unverified altcoins is a typical bubble phenomenon," adding, "It reminds us of 2017 when the bubble was at its peak." Nicholas Colas, co-founder of US investment research firm DataTrek, warned, "The market could crash when Bitcoin's share reaches 40%."

However, there are also opinions that Dogecoin has had a positive impact on the cryptocurrency market. According to the cryptocurrency specialized foreign media Daily Hodl on the 10th, Michael Saylor, CEO of MicroStrategy, which holds the largest amount of Bitcoin among private companies, said, "Investors trying to avoid inflation are turning their attention to Dogecoin," adding, "Dogecoin is having a positive effect by attracting new investors to the cryptocurrency market."

This content was produced with the assistance of AI translation services.