Cryptocurrency News

Bitcoin Dominance Is on Pain of Falling. Who Benefits?

bitcoin mining

The previous bullrun rally – from 2016 to the beginning of 2018 – decrease Bitcoin dominance index from 90 to 33 percent. Following the rapid rise in the value of the main cryptocurrency to the $20,000, the altcoins also had own big moment. Some of coins earned dozens or even hundreds of X for their hodlers. Those who entered the industry at that time depend on repeating a similar scenario this time. Apparently, such scenario can surely become a reality soon.

Is It Necessary to Buy Altcoins?

In 2019, Bitcoin “strangled” all of the existing digital assets. A few coins were able to beat BTC in profitability over the past few months. Altcoins continue to fall in price, making many investors depressed. During the increase in Bitcoin price from $3,100 to $13,000, its dominance index rose from 50 to 65 percent.

Analyst Benjamin Blunts points out that the “Bitcoin hegemony” might end soon. The “digital gold” will remain the main one, but altcoin holders will still gain.

Benjamin analyzed the Bitcoin dominance chart. So, the share of cryptocurrency in the total market capitalization is on the verge of falling. The chart came close to the uptrend, the breakthrough of which would mean serious subsidence of the dominance index.

However, another crypto trader Peter Brandt is very skeptical about the perspectives of altcoins. He regularly mentioned that only BTC deserves a dominant position in the industry, and most of the other coins are doomed to limbo. Brandt also warned investors about the high probability of dropping Ripple.

Note that many altcoins are still falling. If you have a desire to purchase them at the bottom, you can fall into the trap and get another bottom “as a gift.”

Although the hashrate of the “digital gold” is setting new records. This means that there are more and more people willing to mine BTC.

According to the data of the TradingView analytical service, Bitcoin dominance index reached 69.75 percent recently on July 16. This indicator was almost at the same level in December 2017, when the main cryptocurrency was approaching its historical maximum. In July 2017, BTC held a 77.5 percent of market cap.

Trader and analyst Luke Martin believes that the market situation is quite normal. For many years, Bitcoin was the dominant asset in the industry, keeping more than 90 percent of all market cap. The situation started to change gradually with the growth of Ethereum and the boom of other altcoins in 2017.

We must remember that market movement is based on human emotions. When the majority of traders are subject to fear of a sharp fall in an asset, it most likely will not happen. The converse is also true – if greed prevails in the bidding, then we should expect a speedy dump.




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