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- 🔄 The Floppening
Bitcoin is the crypto market in more ways than one.
Rivals have vied to eclipse bitcoin for more than a decade. But even today, they’re still positively correlated with BTC — bitcoin’s strength gives cover for altcoins to rally, only they fall harder when bitcoin corrects. On and on it goes.
Just one coin has ever come close to flipping bitcoin, around this time, eight years ago.
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In June 2017, bitcoin was in the final stages of warming up for a historic push to nearly $20,000 by Christmas.
Altcoin prices were whacky. Bitcoin would be flat one week while coins like BitShares would jump massively, by 250%. Others, like Stratis and DigiByte, were down up to 50% in the same period.
Ethereum, meanwhile, was poised for an explosion in token projects. One study calculated that $7 billion flowed into ICOs throughout 2017, practically all of it going to Ethereum-based projects. That was supposedly 4x more than the equity investments into crypto companies across the same period.
The price of ETH rose as investors piled into coin offerings through Ethereum’s native token. And on June 12, the market cap of ETH came within 17% of surpassing bitcoin’s: $36.8 billion to $44.3 billion.
Had bitcoin stayed flat, ETH would’ve only needed to jump from $400 to $470 to slide into the No. 1 spot.
This banger from the New York Time was published days earlier
But it would never be: BTC and ETH both fell by 60% over the next month, preceding a 10x pump through the end of the bull market for BTC — but only a 9x for ETH. Ether never made the ground back.
Still, ether came much closer than the other two primary hopefuls ever did. Litecoin made it to 10% of bitcoin’s market cap in late November 2013, $11.8 million to $1.18 billion, while XRP reached more than half in May 2017, about a month before ether’s attempt.
By late June 2017, it was becoming clear the Flippening was no longer realistic
These days, ETH sits at around 13% of bitcoin’s market value, with bitcoin dominance currently at almost two-thirds — its highest point since January 2021.
If there’s a status quo in crypto, it's bitcoin.
— David
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Permissionless IV kicks off in Brooklyn tomorrow and runs until Thursday. Catch Supply Shock’s Pete Rizzo in conversation with Peter Todd early on day one.
Anthony Pompliano has struck a $1-billion SPAC merger to launch a new bitcoin treasury company, ProCap Financial. The firm has already raised $750 million in what’s billed as the largest initial fundraise for a public bitcoin treasury company to date.
ICYMI: Texas can now buy and hold bitcoin after Governor Greg Abbott signed Senate Bill 21 into law on Friday. Texas is the third US state to form a strategic bitcoin reserve after New Hampshire and Arizona, but it’s the first which can actually spend public funds on bitcoin.