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Bitcoin to Dramatically Increase Crypto Market Dominance in 2019: Report

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Bitcoin has always been at the forefront of the crypto market dominating this 10-year-old industry. But with the beginning of the year 2017, altcoins began to drastically gain in terms of market dominance. From January 2017 to April 2017, the market capitalization of altcoins increased from 12% to 40%. And just after eight months, at the peak of the so-called "Crypto Bubble", altcoins held 66% dominance over the crypto market shifting Bitcoin's share to a mere 33%.

However, in early 2018, Bitcoin's fortunes took a relative turn for better when altcoins started showing signs of weakness for several months. Now eleven months later, the Bitcoin market dominance has stabilized in the range to 55 to 55% as per the data of CoinMarketCap.

Bitcoin will be making a stunning comeback towards the end of the year 2019 and capture two-thirds of the market capitalization.

Kearney Report 2019: Bitcoin's Comeback and 2/3 Market Capitalization

American management consulting firm, A.T. Kearney's report on cryptocurrencies reveals that Bitcoin will be making a stunning comeback towards the end of the year 2019 and capture two-thirds of the market capitalization. Citing reasons for this ~66% target, the report said that much of the lustre of altcoins would be washed away due to their high-risk characteristics, complexities such as the "hash wars" leaving behind the established players such as bitcoin to dominate the crypto market.

Investors' growing affection towards bitcoin over altcoins can be credited to the U.S. SEC's renewed crackdown on ICO-funded tokens. The American financial regulator recently fined AirFox and Paragon, two-lesser known ICOs, in a precedent-setting case, thereby instilling a sense of fear among investors. The manager of thought leadership in A.T. Kearney's Global Business Policy Council, Mr. Courtney Rickert McCaffrey says that this isn't exactly the case. He says that the technology has become too complex for an average investor, as recently displayed by the Bitcoin Cash hard fork and hash war. He tweeted,
"Additional 'hard forks' and the continued lack of consensus among developers about a path forward will further widen the chasm between Bitcoin as the most accessible and widely recognized cryptocurrency and the altcoin community."

"Additional 'hard forks' and the continued lack of consensus among developers about a path forward will further widen the chasm between Bitcoin as the most accessible and widely recognized cryptocurrency and the altcoin community."

Apart from A.T.Kearney, Tom Lee, head of research of Fundstrat also claimed that investors have decided that Bitcoin is the best in the crypto market and with the SEC's classification of BTC as a commodity, the asset's return to a higher dominance level is rationalized.

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