Bitcoin dictates the market. If people are excited by Bitcoin, then everything else eventually follows. If people are wary, then the bears come out to play. Right now people are real excited about Bitcoin.
The past couple of weeks have delivered ample reminders that when Bitcoin takes the stage, it’s a real bad time for altcoins. If you were unlucky, your alts dropped in value alongside the ratio, all while Bitcoin surged 30 per cent. Here's a few things happening for BTC, and few others:
- The first Bitcoin Futures ETF just started trading on the New York Stock Exchange.
- Grayscale is planning to convert their US$39 billion fund into a physical ETF.
- Bitcoin notched its highest ever weekly close and is now the 8th most valuable asset on the planet.
- Google just announced a Bitcoin payments option
- Twitter is using the Lightning Network
- Entire countries are considering adopting Bitcoin as their national currency
The reason for the adoption is simple enough. Bitcoin is such a large part of the market – around half in fact – that any move becomes a significant liquidity suck for these lesser coins as people sell into BTC. In investor terms, BTC is the bluest of blue chip stocks.
Don’t underestimate investing a portion of your folio into BTC. Definitely don’t go all in on any single thing. There is only one factor still holding back a new all time high - Google Searches. As soon keyword searches for bitcoin rockets to previous highs, we are in for the mother of all bullruns, and Bitcoin, the King, will lead the way.