Bitcoin Loses Dominance to Altcoins and Stablecoins, Ending The Quarter At a Loss

The popular cryptocurrency data aggregator, CoinGecko, reviewed the events in the digital asset market in Q1 2020. According to the report shared with CryptoPotato, Bitcoin ultimately ended up losing 11% of its value, but some altcoins and stablecoins managed to record gains and decreased BTC’s dominance. 

Bitcoin’s Q1 Data

The unexpected outbreak of the COVID-19 pandemic put pressure on most financial markets, including cryptocurrencies. With the violent price fluctuations in Q1 2020, most digital assets provided negative returns. Bitcoin, for instance, lost 10.8% of its value, according to the document.

Bitcoin Price Performance Q1. Source: CoinGecko.com

The graph above demonstrates BTC’s movements in relation to world events. Aside from the most talked-about news in this period – the coronavirus – the graph also refers to some other compelling moments.

Those include the popular TV show The Simpsons explaining the nature of cryptocurrencies and blockchain, and Virgin Galactic chairman, Chamath Palihapitiya, advising people to allocate 1% of their investment portfolio into Bitcoin.

Despite the decrease in Q1, it’s worth noting that with the start of April, Bitcoin is entering its strongest quarter historically. As CryptoPotato reported recently, BTC has surged on average by 66% in Q2. Co-founder of CoinGecko, TM Lee, also expressed optimism regarding this period:

“The first quarter is one that we most definitely want to erase from memory. Not only was the world ravaged by the COVID-19 pandemic, we saw massive losses in the stock and crypto market. However, with every massive drop in price, there is always an opportunity to buy cryptocurrencies for cheap. As we enter Q2, we hope that the COVID-19 situation will subside and markets will improve.”

Altcoins Rise Against BTC

Despite the massive dives in mid-March, when the market lost about 40% of its value in 24 hours, some coins ended Q1 in profit. Those include Ethereum (+3%), Bitcoin Cash…

Source Link