During 2017 and 2018, Bitcoin experienced a decline in its market share. New tokens and assets emerged and were also able to increase their price, taking part of the market that Bitcoin had. Bitcoin had a market share of over 88% at the beginning of 2017 and it is currently under 55%.
However, in 2019, Bitcoin could regain ground in the market. According to a report released by the leading consulting firm A.T. Kearney, Bitcoin will regain part of the market share lost in the last few years.
About it, the company explained:
“By the end of 2019, Bitcoin will reclaim nearly two-thirds of the crypto market capitalization, as altcoins lose their luster because of growing risk aversion among cryptocurrency investors.”
According to A.T. Kearney, global financial regulators will be adopting a more measured and less restrictive approach. There are several regulatory agencies that are trying to improve their control over the market without being too oppressive. This would help reduce crypto price volatility and discourage criminals to participate in the crypto space.
Is #cryptocurrency dead? Not quite. In their annual predictions report, @ATKearneyGBPC anticipates that by the end of 2019 #Bitcoin will reclaim two-thirds of the #CryptoMarket capitalization. Read more about Bitcoin’s come back and other 2019 predictions: https://t.co/suDG2knMcZ pic.twitter.com/SLsI0eIlmA
— A.T. Kearney (@ATKearney) December 4, 2018
For example, the British parliament’s Treasury Committee and MPs are also asking for better regulations in the cryptocurrency industry in order to end the current uncertainty. Furthermore, countries such as Malta, Japan or Switzerland are also improving their legal systems to protect investors and reduce uncertainty for companies working with virtual currencies or blockchain technology.
The U.S. Securities and Exchange Commission (SEC) could also approve the first Bitcoin exchange-traded fund (ETF) in the near future. A decision should be taken during February 2019. This is also very positive for Bitcoin. It would allow new investors to enter the market and place their funds in virtual currencies.
Furthermore, Initial Coin Offering (ICO) tokens have been falling more than Bitcoin during this bear market, and in the last months, the number of tokens has fallen to the lowest point this year.
A.T. Kearney explains that the nature of altcoins will also speed up users’ exodus from smaller coins to established assets. For example, a few days ago, Vertcoin experienced a 51% attack that affected its network. Users might find Bitcoin or other large-cap coins a safe place to store their funds rather than smaller virtual currencies.
At the time of writing, Bitcoin’s dominance is 54%. However, earlier this year, its market capitalization dropped down to 33%.