Bitcoin, back in 'solo run' mode... Are XRP and Dogecoin over?

▲ Bitcoin (BTC), Altcoins/ChatGPT generated image

As institutional funds concentrate on Bitcoin (BTC), its dominance in the market is rapidly expanding. Amidst this trend, there are warnings that the position of major altcoins such as XRP and Dogecoin (DOGE) could weaken.

According to cryptocurrency media outlet Benzinga on May 1 (local time), the inflow of institutional funds through Bitcoin spot ETFs is fundamentally changing the capital flow in the virtual asset market. An analysis suggests that a structure has formed where funds are gravitating towards assets with proven stability and profitability, leading to a relative decrease in liquidity for altcoins.

Bitcoin is strengthening its status as 'digital gold' and establishing itself as a store of value. XRP, on the other hand, is evaluated to have missed the opportunity to secure technological superiority due to prolonged legal disputes. There are also indications that its existing strength, promoting cross-border payment efficiency, is gradually being diluted by the development of Bitcoin Layer 2 technology. Dogecoin is also assessed to be unable to shed its image as a speculative asset due to its infinite issuance structure and limited utility.

The increasing adoption of Bitcoin by mainstream finance is further widening the gap between assets. Major asset management firms are incorporating Bitcoin as a core asset in their portfolios, while maintaining a cautious stance on altcoins. This trend is leading to an increase in Bitcoin dominance, strengthening a structure that absorbs market liquidity.

The regulatory environment is also developing favorably for Bitcoin. As regulatory reforms, such as the US cryptocurrency market structure bill, progress, Bitcoin has secured a relatively clear legal status, while altcoins still face regulatory uncertainties, including security classification. Analysis suggests that investors are continuing to move towards assets with lower legal risks.

Bitcoin's security and decentralized structure create irreplaceable asset value, strengthening its role as the market's central axis. As the market enters a mature stage, the tendency for funds to concentrate on core assets becomes clearer, raising the prospect that less competitive altcoins may gradually be pushed out of the market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*