In the past two years we've seen BTC dominance as high as 87% before it fell sharply as other alt-coins rose up in their dominance over the market cap. However in the past year we saw BTC start to lose ground as the number of alt-coins increased in the market.
Alts also exerted their dominance for a while as they rose up the ranks and rivalled each other in their feeble attempt to challenge the mighty king of cryptocurrencies.
Now that we're in the second half of 2018 Alts are shedding their value left, right and centre as the king of crypto-BTC squeezes them as it grows in dominance.
Does this signal anything?
The only thing that feels quite certain is that BTC is the market mover. Everything follows it up and down. It's here to stay and it will command everyone's focus for a while to come.
However, most new investors in cryptocurrencies are entering this market looking for a quick profit. They don't seem to be invested into real products and companies building blockchain based solutions. This is fine in a bull market but in a bearish phase it creates a lot of FUD and panic sell.
Compared to the last bearish market 4 years ago, the difference now is that the world is more aware of cryptocurrencies, especially Bitcoin. Since 2013-14 we've had greater technological development in this entire space that has led to more number of users, institutional investors and programmers investing their time and money in this space.
We're likely to see the market change course over a longer time-frame from here onwards. 200b market cap isn't a lot, even 1 Trillion dollar market cap isn't much when you combine all the projects in this industry.
However, it might take some time before we get there and BTC is going to make some big moves in either direction to plant itself firmly as the numero uno of all cryptocurrencies and the one crypto you should never leave out of your portfolio. Isn't it a safe bet after all?
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Im a technical trader & the charts show we are very near the bottom. With a nice bounce today, maybe we will head up. Etf keeps getting pushed back tho. Its just a matter of time.
When btc dominance >50% the market moves.
Thanks for sharing this good information.
Thank you for bringing a good news to us.
Thanks for the info!
Also wrote about this situation on my blog if you're interested: https://steemit.com/bitcoin/@aezakmi/crypto-stats-bitcoin-going-solo-again-market-cap-support-and-top-10
Cheers! 😄
I am very scared after reading this post. I have most of my investment in alt coins. BTC is very less in my portfolio. The dominance of BTC in crypto market is affecting other coins. It is becoming somewhat difficult to balance the portfolio.
What do you suggest @firepower? Whether I should transfer my stakes from alt coins to the BTC or should I hodl the alt coins. Could you please guide in managing the portfolio? Or which coins would you recommned to HODL?
For me BTC dominance has been a symbol of upcoming bull market. The reason is that I am a newbie in crypto-space and entered the market in 2017. At that time I saw the dominance falling and soon we had a major bull run after that.
I know my logic is incomplete but it was my first experience and it kind of stayed with me :-)