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

▲ Bitcoin (BTC), Altcoin / 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) may weaken.

According to cryptocurrency media outlet Benzinga on May 1 (local time), the influx of institutional funds through Bitcoin spot ETFs is fundamentally changing the capital flow of the virtual asset market. An analysis suggests that a structure has formed where funds are flocking to 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. On the other hand, XRP is evaluated to have missed opportunities to secure a technological advantage due to prolonged legal disputes. There are also indications that its existing strength of cross-border payment efficiency is gradually being diluted by the development of Bitcoin Layer 2 technology. Dogecoin is also evaluated 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 institutional finance is further widening the gap between assets. Major asset managers are incorporating Bitcoin as a core asset in their portfolios, while still maintaining a cautious attitude towards altcoins. This trend leads to an increase in Bitcoin dominance, strengthening the 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, but altcoins still face regulatory uncertainty, including judgments on their security status. Analysis suggests that investors are continuing to move towards assets with lower legal risks.

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

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