Bitcoin No Longer Seen as the Driving Force in Crypto Market
- Indexica points to a growing cryptocurrency ecosystem
- Moves spurred by competing coins, new blockchain technologies
Bitcoin has plunged more than 30% since hitting a year-to-date high. That fact is clear, but explaining why the world’s largest digital currency has lost momentum in the second half of the year is anything but.
Some, like JPMorgan Chase & Co. have pointed to Intercontinental Exchange Inc.’s new futures contracts and an unwinding of long positions as likely culprits for the nosedive. Others have pointed to a buildup of technical bearish signals as setting off its summer swoon.
Indexica, an alternative data provider, has a different take. According to their predictive index built on data from Aug. 1 through Oct. 1, Bitcoin’s fall has less to do with the currency itself and more to do with a growing cryptocurrency ecosystem.
According to their latest findings, Bitcoin’s price moves are being driven by competing digital currencies and new blockchain technologies. Indexica’s study showed talk around Mastercard’s partnership with R3 to develop a new blockchain payment system as a strong driver of recent returns.
That’s not necessarily a bad thing.