The chief executive of Bitcoin (BTC) financial services firm Fold is issuing a warning about altcoins, saying that the crypto king’s market dominance isn’t something that will backtrack.
In a new interview with CNBC Television, Fold CEO Will Reeves says that the top crypto asset by market cap’s recent new all-time high was due to a combination of high institutional demand and low supply.
“This is what happens when massive demand meets the finite supply of Bitcoin. And what we’re seeing right now is the supply shock in motion.
So I’d certainly say what we are seeing is the fundamentals of Bitcoin in play…
What we’ve seen recently with the rise of Bitcoin treasury companies, the ETFs (exchange-traded funds) is that entirely new classes of capital are able to invest in the asset. What we’re seeing is what happens when trillions of dollars start knocking on the door – the price tends to go up.”
According to Reeves, the market’s appetite for BTC will cause its dominance levels to irreversibly rise – a trend that would leave countless altcoins competing for capital.
“Frankly, I think [altcoins] will remain speculative. Bitcoin dominance is at 60% and rising. I think what we’re seeing is an inevitable trend towards the signal, the apex asset. The issue is that Bitcoin is the only credibly neutral digital asset that is in issuance.
All the other tokens are still proving extraordinarily speculative use cases without the track record of Bitcoin. And so what we are seeing today is the continued march of Bitcoin dominating this entire market… Ultimately, what we’ve seen is something that can’t be reversed.”
Bitcoin is trading for $117,613 at time of writing, a sideways move on the day. Meanwhile, Bitcoin dominance, which measures how much of the total crypto market cap belongs to BTC, stands at 64.58%.
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Featured Image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia
