Topic: Bitcoin Dominance rising again. What is happening? - page 6. (Read 2122 times)

The dominance is rising strongly and the Alt market is tanking to the prices equivalent to what they were during 2016. ETH/BTC were at 0.02 only during March 2017 and when the alt market gained momentum we haven't been seeing any slow downs in the alt season since then. Not just the ETH, but other good coins like XMR and DASH have reached the state as they were during the 2016 year. After August 2016 pump in XMR, I have never seen the prices of XMR/BTC trading reaching a low of 0.007BTC per XMR. Similarly DASH had never been 0.01BTC since July 2016.

Apart from Bitcoin, I am a believer of ETH (more importantly the technology behind it) and Monero. Ethereum and Solidity collaboratively will surely help the businesses to take a new innovative way of using the blockchain and solve major real world problems. Similarly Monero's secure transactions and fungibility help us to be anonymous and gives us full control over the privacy.

Yes that's quite true and I agree with that. The 2013-14 price crashes can be due to the Mt.Gox hack and steadily people got past of it after the halving period.

That was funny, but actually, the pdf has more graphs, I just posted the one referring to BTC dominance, and the pdf makes sense.

Many new and similarity coins are been introduced daily not even monthly again and we have several tokens that are entering the market daily. It is good we are having everything been narrow down to few coins and bitcoin is killing most of the coins that has been abandoned by the developers as many holders see no need of holding them but converting them to Bitcoin and that increase Bitcoin dominant. Maybe in some years to come it might be above 80% dominant as even the Almighty ethereum is also part of the coins that are falling hard against Bitcoin.

Looks like people have lost their hope upon altcoins and the same is being getting moved to the bitcoin. This causes an inverse reaction in the market with growth on bitcoin and crash of altcoins market. Even the ethereum market keeps falling with more and more altcoins serving it as the base following the similar market movement.

Looks like a case of spurious correlation.

https://www.tylervigen.com/spurious-correlations

I stumbled upon this PDF from my local forum explaining Bitcoin has entered stealth phase of bull run
A substantial Bitcoin's growth but a very little public awareness is associated with a stealth phase. The PDF explains much more but I just wanted to show this.

I would say that flash crash was deliberately engineered on Bitstamp to force liquidation in 100x leverage positions on BitMex. This was a textbook case of agioage (manipulating one market to gain from positions on another market). It has been an illegal practice since 20 years in the traditional financial markets. But , you know, crypto si different.

I just want to point out that you are wrong about this part, those two spikes are the most popular not the major ones. 2013 itself has 2 major spikes which is the rise from ~$10 to $250 in 4 first month of 2013 which is a 2400% rise and the 2017 rise in comparison looks like a small rise! we had other big rises like that too before in 2012 and 2011 such as the rise from $1.8 to $16.5

an interesting theory about ETH and the alt market effects though, I have talked about it before during certain drops last year that I saw the huge dumps in altcoin market that indicated exit of a lot of money that put a lot of pressure on bitcoin price.

Interesting theory. I hadn't been paying much attention to ETH at all. Pretty spectacular dumps!

There's an alternative scenario where ETH/BTC keeps taking a beating. If BTC/USD exits this range to the upside, alts will probably taking another walloping across the board.

I completely agree with this statement and it deserves a merit.

Basically the complete dump of BTCUSD to $9850 which happened yesterday was mostly due to ETH in my opinion. I was watching the charts and when ETHBTC started breaking yearly support areas, all hell started to break lose.

Most likely due to over-leveraged longs waiting for "alt season" there were 2 massive spikes in ETHBTC, which caused a dump in ETHUSD which caused a flash crash and this most likely contributed to the selling of BTCUSD.

Now it seems to have stabilized however there might be more dumps if ETHBTC breaks the 0.02 ratio. 

If the market cap of a coin is zero, market dominance of Bitcoin is not affected. The problem is when a fake coin has pumped market capitalisation: then it can alter BTC dominance.
But, yes, shit is shit and gravity will work for those useless coins.

Do you remember the time where so many coins were created monthly? I think this period is starting again and is even worse... if I'm correct we got over 300 news altcoins within 6 months. No need to debate to say we agree 99.99% of them are just shit. Since it's shit, they fade and die and are forgotten. Mathematically BTC's dominance increases so. Not sure if it makes sense lol

that is something that the newcomers who are now bag holding tons of different altcoins in their so called "portfolios" don't want to accept. some time ago someone posted a screenshot of coinmarketcap website that belonged to a couple of years ago. it was funny to see the "top" coins of that time and how they were hyped up so much and people were thinking they all are going to live side by side of bitcoin and there were even talk of "replacing" bitcoin! that list doesn't look anything like today's list but people still have the same expectations...

There were 2 major price hikes in the history of bitcoin. One was the 2013 year and another was the 2017 year. Ethereum plays a major role in today's alt market since most of the shit coins are created out of ethereum network. 2013 weren't much affected with the shit coin losses since Ethereum was created only in late 2013 - early 2014. So people who came to know of the cryptocurrency market followed bitcoin and updated themselves with the tech in the later time. But the real problem started with the development of Ethereum and the formation of EEA. This was probably the reason which triggered various companies to learn a little bit of solidity code and create their coins out of thin air.

The event reached its peak by end of 2017 and probably people who came to know of cryptocurrency jumped onto alts in the verge of catching an earlier train. This fueled various companies and scammers to start their own coin. Once some of these companies collapsed, the 2017 newbies started realizing the real potential of bitcoin. This paved way for major selling in these shitcoins and the transfer of all their money to bitcoin.

Alts have the potential unless the start-ups don't scam and run away with investors money and similarly Ethereum is a good platform for bringing business into the blockchain if they are utilized in a proper way. The speculation of alts being the next bitcoin should come to an end and if that happens we would see the real potential coins which can solve the real world problems through blockchain cherishing over the period of time. People should become more educated and must have the capability of distinguishing a product based alt with a payment processing coin like btc.

I think right now people are not even caring about altcoins which makes the dominance go higher and higher. Right now the whole entertainment is over at bitcoin and it goes up and down and makes all kinds of moves, we see 13.8k one day then see 10k the other day, hell we have seen under 10k in the past 24 hours even though it didn't stay there for too long.

So, that is why I think altcoins will not get too much attention some more time, bitcoin is already making enough movements tom ake a difference in anyones portfolio and that is why it is totally understandable why the dominance high since its enough for people, if you trade between dollar-btc all day you have enough volatility and possibility to make money. When these movements stop in bitcoin then it will be the time for altcoins to start moving as well.

Most likely there will be a bunch of new coins for this exact reason. This has already happened in the past. Look at Dan Larimer for example. Launched BitShares, made some profit, abandoned the project, and now it is bleeding out. Launched Steem, made some profit, abandoned the project, and now it is bleeding out. Then he launched EOS, and for reasons unknown, a bunch of idiots poured money in to it and made it the most successful ICO ever. Now, the value of EOS against BTC is constantly falling. No doubt Larimer will take his profit and leave before long. But when he launches his next project, I have no doubt a bunch of idiots will jump on that one too.

Having said that, coins don't need to evolve, develop, have a working product, or be in any way actually useful, and people will still throw their money at them. Look at TRON, EOS, BCH, BSV, and so on.

This space is far from rational. A few empty promises and a shiny website is all you need.

The thing I'm most curious about is how are they going to frame it this time around if they do start shilling.

'Hey, since 2017 Shitcoin has achieved nothing, is owned by fewer people than last time, has not really evolved in any way whatsoever and cost its previous owner a 99% loss... what are you waiting for?' may not wash.

Most coins were still fresh and spouting off about their potential in 2017. There'll no doubt be some bonkers pumps but I'd love to know how buyers and hypers justify it to themselves. Bitcoin has plenty to point to in terms of progress regardless of price. Not a great deal else does.

Whatever happens I don't think any alt pump will resemble the previous bubbles. In 2013 there were only 40-50 coins in total. In 2017 there was the ICO shit and nearly two thousand more. The next one could look very different indeed.

Money got separated by stupids.
This is a natural and unstoppable process.
Hopefully it is for the Good.

Lessions learned, alts are never to come back.
At least: not these alts.

It all depends on how crazy the retail mania will turn out to be-- coins deemed to be expensive motivates people to pick altcoins lower on the list, where even the worst possible shitcoins will pump like there is no tomorrow.

The part where things become interesting is when the moment will be triggering them to enter again. Is it alts hitting all time highs? Is it media sources such as CNBC explaining how to buy x/y/z shitcoin?

The fact that altcoins haven't seen much love shows how rekt the previous generation retail gamblers are. Some tokens literally lost over 99% of their value. From dreaming about lambos to dreaming about wiping altcoins out of their memory.

actually it is because market "dominance" is based on market capitalization which is then mainly affected by the coins supplies. i posted some numbers here https://bitcointalksearch.org/topic/m.51618134
basically we were dividing 16,000,000 by 30,000,000,000,000 and ended up with 40% bitcoin dominance.
today we are dividing 17,000,000 by 12,000,000,000,000 and end up with 60% bitcoin dominance!

of course that is just part of it. the other main reason is the fact that altcoins have been dumping and disappearing to 0 for the past 1.5 year starting from 2018.

you can fake volume (which won't affect market cap hence no effect on "dominance") but you can't fake prices without spending a ton of money.

EXACTLY!
that is what i have been saying forever! people always look at the wrong values when they check altcoin prices. and the funny thing is that they are all trading them with bitcoin but they look at their prices in USD!!!

as an experiment to know why market cap is a bad indicator for "dominance" and to understand the comment i linked above you can go ahead and calculate the REAL market cap of top altcoins by removing their premines and only using their REAL supply that is actually in circulation not locked away somewhere. then you can see that each of them lose at least 70% of the market cap that they currently have specially big coins that have big premines among the top 10 altcoins.