Bitcoin Dominance Index Recovering After Dipping To 50.8%

in #bitcoin8 years ago (edited)

After losing 20% market cap in a month's time, it looks like the trend is reversing. While most altcoins (except Steem :)) are bleeding red, Bitcoin reaches a new high: $1830


1 month chart

7 days chart

How will this play out? What to buy and sell? I like the simple trading advice: buy low, sell high... Most alts are still priced too highly in my opinion. Personally, I'm more of a holder, so that's what I'll do, I'll hold...

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There are several criticisms against the Bitcoin dominance index. It measures market cap in a way that tokens like GNO are double counted. Although the price is multiplied by circulating supply of currency to get market cap, the circulating supply of altcoins are often lesser than shown because a lot of the altcoins are held back by the developers.

          In short, although Bitcoin may be coming down on market cap %, it is more liquid than altcoins and is less likely to inflate due to increase in circulating supply.