Altcoins Reap Bitcoin’s Recent Gains

Bitcoin’s recent price gains have spread to other cryptocurrencies and altcoins, according to Charles Hayter, chief executive officer and founder of CryptoCompare, which provides data on cryptocurrencies, 

MarketWatchreported. Ark Invest and Ethereum have been among the winners.

Chris Burniske, a blockchain analyst and product lead at ARK Invest, said bitcoin’s gains, driven by the fall of the Chinese yuan, are filtering into the broader market as bitcoin traders look to reinvest their profits. Cryptocurrency investors typically put profits in other cryptocurrencies rather than fiat currency.

Two of ARK Invest’s exchange traded funds have exposure to bitcoin by holding shares in Grayscale’s Bitcoin Investment Trust.


Bitcoin Gains Move To Altcoins

Over the past month, bitcoin’s market capitalization expanded by about $4 billion. If investors reinvested gains in other digital currencies, the market for bitcoin’s rivals would double in size, Burniske said.

Most exchanges don’t enable investors to trade fiat currencies for altcoins. Those who want to invest have to first purchase bitcoins, then exchange them for the desired altcoin, he said.




Security Boosts Zcash And Monero

Zcash and Monero, altcoins with enhanced privacy capabilities, both rose sharply in recent weeks. Hayter said both currencies have more extensive privacy features built into their networks than bitcoin.

Monero’s value more than doubled over the past month, from about $8 to about $17.

Kraken, another U.S.-based exchange, began trading Monero, also contributing to its gains, Hayter said.

Zcash, which has been volatile since it launched in November, rose from $34 to $52 in the past two weeks.



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