Analysts behind a monthly cryptocurrency report titled "Bloomberg Crypto Outlook" said Ethereum, XRP and other digital assets included in BGCI are unlikely to recover to the level of June 2019 until Bitcoin reaches a record high, observed Three Arrows Capital CEO Su Zhu on Twitter.
Bloomberg's monthly crypto market columnist is bullish BTCUSD and BTC.D pic.twitter.com/rdNp4Dmnvr
– Su Zhu (@zhusu) November 7, 2019
The Bloomberg report read:
"We think Bitcoin would have to go back to historic highs for the BGCI to exceed its June peak …. We expect that the broader market, measured by the Bloomberg Galaxy Crypto Index, will have little chance for further progress without a higher bitcoin price. "
The Bloomberg Galaxy Crypto Index, briefly referred to as the BGCI, includes Bitcoin, Ethereum, Monero, XRP, and Zcash, and primarily measures the performance of the major alternative cryptocurrencies traded in USD.
Bitcoin is expected to be in a range for a while
Currently, technical analysts are generally cautiously optimistic about the short-term trend of Bitcoin and the rest of the cryptocurrency market. In the last two weeks, since Bitcoin's abrupt rise to $ 10,600 on October 26, the Bitcoin price has ranged from $ 9,100 to $ 9,500, without breaking out or being below key resistance or support levels.
Two days ago, however, the Bitcoin price did not hold its level, dropping below the $ 9,000 mark and currently finding support at $ 8,800.
The total market capitalization of the cryptocurrency market has fallen by $ 135 billion since June 2019 as Ethereum, XRP and other assets declined. As Bitcoin increases bandwidth and selling pressure due to rising sell limit orders on key exchanges, it is expected that the dominant crypto currency will continue to consolidate or fall, creating a challenging environment for alternative crypto currencies such as Ethereum and XRP. Bloomberg researchers said:
"Our primary on-chain indicators – Coinmetric's Transactions and Active Addresses – point to an up-and-coming market moving in a bandwidth."
What is behind the gloomy mood about alternative cryptocurrencies like Ethereum and XRP?
Ethereum and XRP have recently shown strong fundamentals as the use of the Ethereum network increases due to the increasing popularity of decentralized funding (DeFi) and the mood around XRP has improved with expectations of the Swell conference.
However, in times of uncertainty, investors tend to switch from alternative cryptocurrencies to more robust options such as tethers and bitcoins, which could make it harder for Ethereum, XRP and other alternative cryptocurrencies to reach the June level.
In June 2019, when the Bitcoin price peaked at $ 14,000, the Ethereum price moved to $ 310 and XRP to around $ 0.43. With alternative crypto currencies continuing to fall despite falling 80 to 90 percent from their record highs, a further drop in Bitcoin to the low $ 8,000 could lead to a lower pullback for Ethereum and XRP.
Text Proof: cryptoslate