BTC price fell below $47,000, BTC's position is facing challenges
On May 16, the price of BTC continued to fall, once falling below $47,000, reaching the lowest point in these two months. BTC has been tepid in recent months. This is actually not good news for BTC. High and sideways trading will increase the pressure of holding currency. At present, the cryptocurrency market is a bit chaotic. Not only mainstream cryptocurrencies such as ETH want to compete with BTC, but even counterfeit currencies such as DOGE want to take a share. The cryptocurrency market is now a bit of a three-nation war for hegemony. I think this is also something that investors in BTC did not expect.
The total market value of cryptocurrencies has risen sharply, proving that there are new incremental users participating in the development of cryptocurrencies, which is good news for the cryptocurrency market. However, in the previous cryptocurrency market, BTC was the dominant one, and the rest of the cryptocurrencies were like altcoins. But now it is different. The cryptocurrency market has exceeded two trillion, but the market share of BTC has been declining. Data shows that the current share of BTC in the cryptocurrency market is only about 45%, which is definitely not good news for BTC. BTC is trading sideways at a high of $50,000. Investors are both worried about becoming someone else’s picker, but also worried that they will be someone else’s wedding dress.
There are thousands of cryptocurrencies such as BTC, ETH, DOGE and Litecoin on the market, but all cryptocurrencies, including algorithmic stablecoins, rely heavily on consensus mechanisms. This is a big reason why BTC can dominate the cryptocurrency market. Due to the early development of BTC, under the impetus of capital, a huge consensus system has been established. The larger the scale of this consensus system, the better. If BTC can be supported by enough users, it would not be an exaggeration to say that BTC is a real currency system.
Fighting to hype ETH and DOGE first, capital giants are also worried about becoming the taker of BTC
But now BTC's market position is facing challenges. "Altcoins" such as ETH and DOGE are rising rapidly, which has affected BTC's position. Capital giants hype BTC for two reasons. One is to be optimistic about the future of BTC, and the other is to think that BTC can make money. Both of these points are inseparable from the support of users. Without the support of many users, capital giants can't make money if they are left-handed and right-handed. Of course, without the support of users, BTC will not have any future, so currently grabbing users is a key factor in the development of cryptocurrency.
Looking at the performance of the market now is very unfavorable for BTC. A large amount of capital is flowing to altcoins such as ETH and DOGE, which means that the hot spot of hype is also shifting. Decentralized currency systems such as BTC can attract users in a short period of time as long as capital giants are willing to support it. Whether you have special needs or want to make hype, you can follow the main hype. The success of DOGE is the best case. With the support of Musk, the market value of DOGE and other related animal currencies has soared.
Of course, it is not yet certain what the capital giants holding DOGE and ETH think. I don't know if they want to put a long line to catch the big fish, or are ready to harvest a wave of running away. However, the current development trend is beneficial to DOGE and ETH, because these cryptocurrencies are the bigger the better. The larger the scale of the cryptocurrency, the higher the consensus. Of course, the larger the scale, the easier it is to harvest leeks. Therefore, this matter is also contradictory. According to the logic, the scale of BTC is very large, and the capital giants should gather together to hype BTC. However, because of the large scale of BTC, the risk of BTC is also high. Everyone is worried about being a picker for others.
The capital giants are susceptible to each other, and they are all worried about giving others a wedding dress. The future of BTC is unpredictable
Of course, BTC is not completely without the opportunity to stand up. As long as the capital giants can unite, there is still a great opportunity to stabilize the market. Now that the market's panic about BTC continues to increase, BTC has produced a certain degree of selling pressure, which depends on whether the capital can hold it. Although BTC rises or falls, capital giants can make money through the futures market. But harvesting retail investors in this way will make some retail investors lose their confidence, which is a bit of killing chickens and eggs. Establishing BTC as a currency system with a high degree of consensus can bring benefits to capital giants, which is definitely much better than short-term acquisition of retail investors as a wealth management product. Of course, after the capital giants developed BTC, they could continue to harvest retail investors, but at that time leeks had already grown roots.
If BTC can really develop and grow, it can bring huge benefits to people who hold BTC now, which is why some BTC investors are reluctant to give up BTC. Continue to invest capital to speculate on BTC, worrying that it will become a successor to others. But now that I give up BTC, I feel unwilling and worried about my own efforts to make a wedding dress for others. BTC is now at such an embarrassing price that ordinary investors are no longer able to speculate, and capital giants are susceptible to each other.
The biggest gap between BTC and other cryptocurrencies and the traditional legal currency system lies in this. The legal currency system can advance and retreat with the people with the support of the state, but it is difficult for cryptocurrencies such as BTC to do so. Perhaps when prices are rising, the capital giants can gather together to keep warm, but not necessarily when prices are falling. It's okay to share blessings, but it's difficult to share difficulties. This is the essence of cryptocurrencies such as BTC.
