Home Bitcoin News Bitcoin (BTC) Dominance Declining Means Money Flowing in to Alts

Bitcoin (BTC) Dominance Declining Means Money Flowing in to Alts

Bitcoin BTC Dominance Declining

The entire cryptocurrency market are talking about Bitcoin, Ethereum and Dogecoin.  The price of Ethereum going up like crazy has triggered a lot of discussion among investors. 

When it comes to investing in the cryptocurrency market it used to be Bitcoin the first thing in the thought.  However, it just looks like the price trends of ETH are grabbing the limelight from BTC.

Bitcoin dominance went down by 50% for the first time since August 2018. What it means to have Bitcoin Dominance fall? There are implications for Bitcoin dominance rising and falling.

For clarity for those who are new, the cryptocurrency market cap is at 2.07 trillion – out of that how much of that does BTC market cap cover for. This means BTC is dominance because it takes the major share in the market pie. It takes a major percentage of the entire market.  The market cap of BTC was at $1,082,945,525,979 at the time of writing.

However, for so long in terms of dominance BTC was No 1.  However, we are not able to see that the BTC dominance is dropping and it is becoming lower and lower. Investors are left wondering what it means if BTC dominance goes down? Is it good for crypto or is it bad for crypto?

This market cycle is different now because there has been a Coinbase IPO, institutional investors entering in, there are banks who are becoming bullish on Bitcoin now. All the naysayers are churned in to Bitcoin. For instance, Michael Saylor simply bought 15 million dollars out of the blue randomly.  Analysts are not sure if this will stop or if it will go past all the way to higher dollars than what prevails now.

Before when there was Bitcoin dominance there was no Altcoin seasons. Even during the beginning of 2017, BTC dominance was at 90%

After 2017, Ethereum happened, ICOs happened, and there was a march of Cardano, TRON, NEO, Chainlink and all of these began getting very, very high and this meant that the BTC dominance started coming down very rapidly. It went down from 95% to as low as 61%  there was lot of pump from Altcoins and the BTC dominance went all the way down to 49% to 50% and it stayed there. At a point, from December 08, 2020 Altcoins literally went up and all the money has flown out of Bitcoin and went in to Altcoins. That was a point when BTC dominance went down at 35%. For now, it has not gone down to 35%. However, when the BTC dominance goes down, money flows out of it in to the Alts.

Some of them state that BTC dominance falling probably means a bunch of Alts are overheated and this can mean that the alt-crash is coming.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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