A Fundamental Shift in Cryptocurrency Pricing

The price of Bitcoin continues to hit all time high every couple of weeks.

The price of the majority of every other coin is below their one year high.

It use to the case that if Bitcoin rises, so does the majority of every other currency. The inverse was also true.

This is no longer the case.

Pricing of ALT Coins are no longer pegged to Bitcoin and Ethereum prices. To buy alternative coins in the past, individuals would have to own Bitcoin or Ethereum. As the price of Bitcoin and Ethereum increased/decreased, so did the value of the alternative coins.

Buyers are now divorcing the price Bitcoin from alternative coins. Buyers are becoming more cautious. Buyers are now starting to evaluate the merits of alternative coins. Buyers are asking themselves what they are actually buying and owning.

All other coins are seen as inferior to Bitcoin. Even for Ethereum, its pricing has remain relatively flat compared to Bitcoin. Ethereum pricing changes is in line with all other alternative coins.

Bitcoin is seen completely different than any other coin. This makes sense as Bitcoin is currently a currency in which goods and services can be exchanged for.

This gap will continue to increase as more and more “mainstream” businesses accept Bitcoin as a form of payment.