Surprisingly, Bitcoin has been underperforming compared to altcoins over the past week. A recent report of Bitcoin Magazine shows that Bitcoin's dominance has dropped as it hit strong resistance at 67.5% and is currently holding at 64.9% after three days.
Bitcoin has dropped by nearly 0.5% in the past 24 hours while both Ethereum and XRP are increasing from 0.5 to 1.5%.
However, a leading cryptocurrency investment fund has reduced the purchase of altcoins and allocated more capital to Bitcoin. Here is why.
Bitcoin will outperform this crisis
In posts "Crypto in times of crisis: Letter from Blockchain Pantera, March 2020," Dan Morehead and Joey Krug of Pantera Capital blockchain central fund explained that Bitcoin will be able to surpass other coins for a while, because It is one of the cryptocurrency projects that can operate without relying on any funding.
They further explain, "usually there will be a shift in quality investment" or move to a safe place, where people want to put their money into large-cap assets, the safest assets or also known as the "treasury of the market". In the cryptocurrency market, Bitcoin is a treasury bond, as it is far more liquid than the rest.
Bitcoin could reach new highs within a year: the CEO of Pantera
Pantera's CEO thinks that Bitcoin will perform better in this time of crisis.
In the article, Morehead explained that the government's response to the crisis will help Bitcoin increase sharply in the long run.
“When governments print more money, it will take more money to buy things in fixed quantities, like stocks and real estate, where they can silently inflate prices. In addition, they also raise prices for other things, especially gold, bitcoin and other cryptocurrencies. ”
Regarding how it will affect Bitcoin, Morehead explained that, in the context of the current price of BTC, it took 12 months to set a new record above $ 20,000, marking an increase of at least 230% from the level. Current price $ 6,200.
According to Newsbtc
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