With the fall of bitcoin and the shares of large companies in the financial marketInvestors around the world may see a similar move. This same rule applies to so-called “penny stocks” and altcoins.
Since bitcoin’s founding in 2009, several other altcoins have hit the market, with different and supposedly better offerings. However, none have surpassed bitcoin in terms of trusted and decentralized technology so far.
Therefore, those who like altcoins look forward to the so-called “high season” moments, when these alternatives start to value more than the largest coin.
Even so, the market corrections of recent years show that the fall of altcoins is harder, as well as irreversible in many cases.
Is the fall of Bitcoin related to the actions of large companies? There is a movement that prefers more quality with greater market risk
Bitcoin’s fall from its all-time high has already lowered the price of the coin by 56%, when seven months ago each coin was worth $69,000 each. Today, the bitcoin price is holding steady at $30,000, but far from the recent spotlight it has gained.
In this way, the fall of bitcoin ended up generating fear among investors in this market and many abandoned their positions. However, many altcoin investors have also sold their holdings in these riskier coins, keeping the value in bitcoin or market stablecoins.
In any case, bitcoin market dominance has grown since May, an episode that marked the death of the currency of the Earth (LUNA). That is, in the fall, investors in alternative cryptocurrencies looked for a higher quality in their investments and bought more bitcoin.
And this movement is similarly seen in the stock market on stock exchanges around the world. That’s because, with stocks and benchmarks falling, many investors in “penny stocks” (small company stocks that are cheap), began to get out of these papers and buy stakes in large companies.
In other words, with the general fall of the stock market around the world and also of cryptocurrencies, what was noticed is that in the midst of the panic, quality is prioritized.
A recent survey by fintech Stake, a platform that connects Brazilians to the US stock market, shows that investors bought shares in Tesla, Apple, Amazon and Coca-Cola.
At the same time, they sold shares in Hycroft Mining, Eve Holding and Chimerix. The only exceptions to penny stock purchases were bonds from Nubank and Molecular Data, which in May had the largest share of Brazilians.
According to data from Coingecko, bitcoin dominance grew 2% from May to June, surpassing the 45% market capitalization for cryptocurrencies.
Bitcoin dominance has grown by 2% since the fall of the Earth (MOON). Coingecko