Why Another Wave Up For Altcoins Is Probable According To BTC Dominance
July 29 2021 - 06:00PM
NEWSBTC
BTC dominance has always had an inverse effect on the price
movements for altcoins. Historically, BTC dominance determines the
direction the value of altcoins swings in. Bitcoin has so far
maintained majority dominance on the market. But as more time
passes, that dominance goes down as altcoins see more demand. BTC
dominance simply shows how much demand there is for bitcoin
compared to altcoins. The more BTC dominance rises, the lower the
demand for altcoins. This means that for altcoins to rally up
further, bitcoin demand has to go down. Related Reading
| Ethereum Breaks 200,000 Validators Milestone, Over $14
Billion Now Staked In ETH 2.0 Over the years, this dominance has
decreased as more and more investors put money in altcoins. One
reason for this being a lot of investors feel they have missed the
boat with bitcoin and thus are trying to get in early enough on
altcoins. Others revolve around the new technological advancements
being made by altcoin projects. Hence, investors are putting money
into projects that they believe in. How Current BTC Dominance
Affects Altcoins BTC dominance has continually declined over the
past couple of months. Currently sitting at 48.97% dominance,
bitcoin now has less than half of the entire market dominance. This
trend shows that demand for altcoins is on the rise. So, BTC
dominance will continue to see declining numbers. As the dominance
declines, the value of altcoins will continue to go up. Market
trends indicate that BTC dominance is poised to drop following the
latest recovery. BTC dominance currently sits at less than 50% |
Source: Market Cap BTC Dominance on TradingView.com When this
happens, the demand for alts is expected to pick up very quickly.
Leading to another upward wave for the altcoin market. Coins like
the number 2 coin Ethereum are forecasted to gain even more
dominance as the project gains more notoriety among the investment
sector. With ETH 2.0 moving the network to proof of stake and using
significantly less power to mine. The reduced environmental impact
will mean that mining will become less of a problem. What This
Means For Bitcoin Alts gaining more dominance does not negate the
value of bitcoin. Currently, there are over 5,000 coins in the
market all vying for market share. And some of these projects come
with some very innovative ideas and tech. Thus, it is expected that
as time passes, some of these projects will become popular.
Therefore gaining more market share as more investors come into the
market. Related Reading | Fast Money’s Brian Kelly Remains
Bullish On Bitcoin, Here’s Why The declining BTS dominance just
means that bitcoin is not the only digital asset investors are
rushing to get into. Despite decreasing dominance, bitcoin still
remains the number 1 coin in the market. Being the first
cryptocurrency and the reason why cryptocurrencies are currently so
popular. But as alts rally in what is usually known as “alts
season,” bitcoin will continue to see declining dominance. This
will translate to the price of altcoins rallying massively as
interest in them grows. Featured image from CryptoPotato, chart
from TradingView.com
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