Topic: Bitcoin Dominance rising again. What is happening? - page 4. (Read 2038 times)

Get ready for round 6
#AltcoinAnnihilation

Well, even today, the dominance of bitcoin continues to grow. although the increase in the price of bitcoin was quite good at the beginning of this month, it's just that recovery of an altcoin is still quite slow. I have searched out the reason for the price of bitcoin to rise for this month, but I did not find a good reason. I only speculate that this is the usual cycle at the beginning of the month this year.

So, finally we hit 70% according to CMC:



The alts carnage is still on.

Agree with you it is nature and the dominance of the market. The price will be reflective  or will increase and decrease with time it happens when falls then again rises.'  You only will have to make it your investing strategies that when price falls just buy and when it increases try to sell so that you will earn bigger than before

Litecoin is now underperforming since the bottom and is at its lowest ratio since 12-2017.

Whoever held on halvening hype got rekt.

I think we should compare within the period I specified

That is, the period from the recent bottoms (both Litecoin's and Bitcoin's earlier this year) till now, and within this period specifically Litecoin is still a better alternative to Bitcoin if you primarily aim for speculation.

Agree with you it is nature and the dominance of the market. The price will be reflective  or will increase and decrease with time it happens when falls then again rises.'  You only will have to make it your investing strategies that when price falls just buy and when it increases try to sell so that you will earn bigger than before

The IEO that I expected to have assisted in creating that super hype is not making waves at all, as binance is not fining much project they can rely on to register

It has seen over 70% recently and that is a lot, its down couple notches because price went down a bit but its still at %68 and that is a whole lot. Do you guys think that will go down because bitcoin price will go down or do you think altcoins will increase?

Both would drop the dominance a lot and I am not sure which one will happen first. I think altcoins increasing seems like not gonna happen anytime soon because for that to happen we need to have a super hype of crypto and that is really not happening for the past 1 year now, they are all falling and falling like crazy and there is no super hype going around neither so we are stuck with the option of bitcoin falling and that is not really nice for our portfolio neither. I hope altcoins going up one will happen but I am afraid other one looks more possible right now.

it starts by this: "By calculating the market capitalization of a coin, its price multiplied with its circulating supply". but the problem is that the supply value used is NOT circulating supply. it is the existing supply. this makes a huge difference since majority of altcoins have huge premines and practically coins that are not in "circulation". and when you deduct those the market capitalization actually becomes a more meaningful number (although still not a good thing to use for "dominance")

The main reason is that one could easily create a cryptocurrency with 1 billion premined coins, and do one trade at say 3 dollar each. This would lead to a total market capitalization of $3 billion, which would represent 1% market dominance with today’s valuations and inflate the total market capitalization.

The problem is that the calculation does not take liquidity into account. One might be able to sell one token for 3 dollars, but what happens if you want to sell 1 million? Without accounting for liquidity, market capitalization becomes a meaningless measure.

As is shown in the table below, adjusting for liquidity by calculating the volume-weighted market capitalization, bitcoin’s market dominance is pushed well above 90%.

Price measures bitcoin’s popularity. Dominance measures its popularity relative to other crypto assets. In theory this could mean a “flight to quality” as investors get spooked by market risk and switch out of smaller cap tokens into a “safer” asset. Or, it could represent growing interest in the sector as a whole, along with conviction that bitcoin has the strongest fundamentals.

Either way, it highlights that, of all crypto assets, bitcoin is the most attractive from an investor’s viewpoint. (It’s important to note that dominance can increase as the price goes down, and decrease as the price goes up – it’s a relative, not absolute, measure.)

This matters for several reasons, one of which is what it says about market sentiment. While bitcoin is a speculative asset, it can be considered less speculative than smaller cap tokens, given its relative liquidity, history and network size. Its growing dominance points to a focus on fundamentals and on relative “safety,” which depicts a more grounded level of investor participation than in the ICO-fueled boom of 2017.

While not necessarily predictive, sentiment indicators tend to be recursive – you can’t be sure the trend will continue, let alone with what energy, but positive sentiment generally has in-built inertia. If traders choose to buy based on these indicators, they reinforce them, which encourages more traders to buy, and so on.

It is not so much an event as a process, which will take time to develop

Though I understand that a 15% rise within a few hours is nothing out of the ordinary. Regardless, the reward has been halved and now we just have to wait patiently for a few months to see whether Litecoin halving is meaningless or not for its price. However, to claim that it won't have any effect on price is equal to claiming that supply doesn't affect it. For what it's worth, I don't think this is a valid assumption. But let's wait and see

Little update.

Today Litecoin Halved.
A lot of hope was put in this event, but, as I predicted many times, nothing happened, as halving on LTC is meaningless, as SF model in LTC has very little correlation with price