Tone Vays, a recognized cryptocurrency trader and figure, explained that Bitcoin’s (BTC) growing hash rate could negatively affect altcoins in the cryptocurrency market. At the same time, he has also mentioned that traders could have a difficult time trading in the space.
Bitcoin behaved positively during the weekend and was able to grow above $7,600 after several weeks below that level. Traders are becoming very enthusiastic about what can happen in the future and whether Bitcoin will start moving in an upward trend.
Other digital currencies were able to expand in the market, not only Bitcoin. Indeed, Ethereum (ETH), XRP, Litecoin (LTC) and Bitcoin Cash (BCH) were also growing and showing their strength. Despite that, the main question for many traders that remains to be answered is when will the industry experience a new alt season.
Mr. Vays considers that Bitcoin dominance could continue growing before the real alt season starts having its effect in the market. Indeed, he remains sure that Bitcoin could eventually reach a market dominance of 98%.
On the matter, he commented:
“I think Bitcoin dominance has one more push. The way we went from about 50% to 70% in 2019 I think we have another 10% to 15% in Bitcoin to gain on the altcoins as it continues towards 90% and 95%. Then 98%.”
At the same time, he stated that there is no altcoin with a similar hash rate growth like the one experienced by Bitcoin in the last years. Since the beginning of the year, Bitcoin’s hash rate surged from 35 million TH/s to 114.34 million TH/s a few months ago and 113.28 million TH/s on December 22nd.
Meanwhile, Litecoin’s (LTC) hash rate has reached its lowest point since February 2018. This happened after a year in which Litecoin experienced a halving event. At the moment, each LTC block generates 12.5 LTC for miners.
In 2020, Bitcoin is expected to experience a new halving event that would reduce the current 12.5 BTC per block to 6.25 BTC per block. That means that many miners would be certainly affected by this situation. Thus, the hash rate in the network may eventually remain stable or fall if the price of Bitcoin doesn’t grow.
At the time of writing this article, Bitcoin is being traded around $7,600 and it has a market capitalization of $137.82 billion.