Bitcoin is still hot but Bitcoin Dominance is dropping. What does it tell?

bitterguy28

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Quote from: willywilly on April 05, 2021, 03:19:33 AM

Bitcoin is still our everyday issue around the world, not only it is an investment but it is also going into our daily life.

Bitcoin price is constantly reaching high but Bitcoin Dominance is dropping.

Does this indicate that more and more people are interested in altcoins rather than only investing in Bitcoin?

Because altcoin season is now in progress , we can check it in CMC that Bitcoin movement is slowing while Atlcoins is dominating.

https://coinmarketcap.com/

it looks like we are now seeing the Alt covering the market.

nutildah

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The exact reason why Bitcoin dominance is dropping is because it is not growing as fast in market cap as all altcoins (tracked by CoinMarketCap) combined. Outpacing the totality of all other crypto seems to be a heavy responsibility to bear at this point.

I have two different takes for this, so let's do both, because why not:

Quote from: pooya87 on April 05, 2021, 11:55:22 PM

It is extremely easy to create billion dollar market capitalization out of thin air with zero cost

Not in a way that would lead them to be included by CoinMarketCap. Let's drop everything but the top 100: how long before the sum of the market cap of those 99 other coins surpasses that of BTC? If you look at the general trend of things, not too long. And who cares? It is symbolic more than anything -- the rise of altcoins into their own (most of them won't make it ofc). If it is "extremely easy" to do this, you should go ahead and do it.

Quote from: pooya87 on April 05, 2021, 11:55:22 PM

It is extremely easy to create billion dollar market capitalization out of thin air with zero cost

Well, that's how Bitcoin got started.

Sithara007

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Whenever there is an influx of new users, the Bitcoin dominance goes down and proportionately the market share of altcoins rise. But this doesn't last too long and Bitcoin will recover most of the lost market share once these users move towards Bitcoin after getting disillusioned with the returns from the alts. Also, Bitcoin prices are stagnant for the last 4 weeks. Things will change when the next rally starts.

pooya87

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It tells me that even after this many years there are still people who don't have the capacity to understand that market cap ratio has nothing to do with dominance and market cap of majority of altcoins is either mostly or completely fake. It is extremely easy to create billion dollar market capitalization out of thin air with zero cost, specially after introduction of tokens this became so much easier and cheaper. And that value represents a fake and abstract thing which can not even be called "capitalization" let alone be used in any comparison.

sapnu

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Maybe it is caused by the altcoins good performance these past few weeks. Many people might be converting their bitcoin to altcoin although the occurence of this won't be so long since we all know how good bitcoin is doing also. It won't be so long till bitcoin would get a new all time high once again so let us just stay patiently waiting for it and believe that even altcoin season is near or currently occuring, bitcoin would still be able to dominate the market just like how it did way back it reached a price that we never expected.

Vishnu.Reang

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This is just a temporary phenomenon and IMO the Bitcoin dominance will be back to 60+ levels once the next round of institutional investment starts. Right now a lot of new users are investing their stimulus money in various altcoins such as Binance Coin and Cardano and that is causing an increase in their exchange rate, and thereby the market share. This phenomenon is not going to last for too long. At current levels, almost all of the altcoins are overpriced and it is not sustainable for an extended period of time.

online73

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Hello everybody. Bitcoin's dominance can only decline if investors start converting their assets to altcoins. Look at any altcoin in relation to Bitcoin - basically, you will see that the price chart is at the very bottom, in not many pairs the lead-in impulse to the top begins. Even a person who does not understand the bidding understands that the price cannot constantly fall. Now Bitcoin is already at unprecedented price levels, it seems to me that in order not to switch to fiat, it is necessary to keep balances in cryptocurrency, that is, to switch to altcoins. The dominance of Bitcoin may fall at the onset of the al-season, I think that those Xs that were before that are a pale shadow before the impending alt-season.

ultrloa

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Quote from: willywilly on April 05, 2021, 03:19:33 AM

Bitcoin is still our everyday issue around the world, not only it is an investment but it is also going into our daily life.

Bitcoin price is constantly reaching high but Bitcoin Dominance is dropping.

Does this indicate that more and more people are interested in altcoins rather than only investing in Bitcoin?

It means that traders are not only focusing on bitcoin only now and all the assets has been shared to altcoins thats why the dominance is dropping and you don't need to be afraid on that if your worried since you can now buy some good alts since by this days they have huge potential to pump, alt season is occuring best to grab the opportunity in alt market these days.

ilovealtcoins

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Reduced domain means money is flowing through other altcoins. I noticed that after Bitcoin rose in price, other altcoins got a chance to follow suit. I have noticed that the top altcoins like EOS, BNB, XRP, ADA, NEO, LTC, DASH, XTZ ... are rapidly increasing in value. Next will be the altcoins in the lower ranking. The entire market will increase in value until Bitcoin collapses.
If bitcoin doesn't rise in value to higher levels, the bull cycle will end.

bekti3

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Quote from: willywilly on April 05, 2021, 03:19:33 AM

Bitcoin is still our everyday issue around the world, not only it is an investment but it is also going into our daily life.

Bitcoin price is constantly reaching high but Bitcoin Dominance is dropping.

Does this indicate that more and more people are interested in altcoins rather than only investing in Bitcoin?

issue? in what words?
those who think the problem is because they don't really understand bitcoin, bitcoin comes with a million alternative solutions. think!
regarding the dominance of bitcoin, due to a surge that is increasingly inaccessible to those of us who are only small traders. Therefore, the alternative use of Altcoin offers several advantages, including low prices and low shipping costs. however, I think everyone is waiting for a bigger bitcoin correction. so that the profits that you get from altcoin can be directly allocated to bitcoin.

Haunebu

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BTC dominance is close to 56% currently which is still pretty high. Popular altcoins like ETH, LTC, XRP etc are drawing in more and more investors in recent times which is why the small drop in BTC dominance currently makes sense.

However, I don't think it will drop below 50% since the current bullrun is not similar to the one back in 2017 where so many altcoins touched the moon.

Only popular altcoins will continue rising in value due to which the BTC dominance percentile will most probably continue to hover in the 50-60 percentile range.

tranthidung

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Quote from: willywilly on April 05, 2021, 03:19:33 AM

Bitcoin price is constantly reaching high but Bitcoin Dominance is dropping.

Does this indicate that more and more people are interested in altcoins rather than only investing in Bitcoin?

Dominace of bitcoin is decided by two factors:

BTC price that is used to calculate the BTC marketcap
Total market cap of altcoins: it is the big and volatile factor. Bitcoin is only one but altcoins have thousands and new altcoins will appear. Their total marketcap change by old, current and future altcoins.

In bull market, dominance for altcoins are biases by new and/or scam altcoins. If you don't have data for before and current period of the market with the cut-off is when the bull market begins. Data for two periods (if you have) can help you to judge which total marketcap are from old altcoins and which marketcap are from new born altcoins.

Lucius

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Quote from: xSkylarx on April 05, 2021, 05:40:20 AM

What if btc could reach new ATH again, will bitcoin dominance increase again? Because many are saying $70k is possible this month. Most people like me that who only have small amount to invest prefer altcoins because a 50% gain is very easy. If bitcoin dominance starts increasing again because of new ATH then this will not be good for altcoins. Many are saying it is altseason now but they are contradicting it with bitcoin being $70k. I don't think both situation can happen.

If you look at the past, whenever BTC was on an upward trajectory it was the case with altcoins as well - except in the case of 2019 when many were wary of the losses they made during 2018. You can see a much clearer picture if you look at the following graph.

https://coinmarketcap.com/charts/#dominance-percentage

It is clear that from 2013 until the end of 2017, BTC dominance was over 80%, and that since then until today it has not exceeded 70%, which had no impact on the price. If you compare 2017 ATH with today's situation, BTC and ETH have almost identical market dominance in percentage. I would not say that we have a season of BTC or altcoins, it would be more correct to say that we have a season of cryptocurrencies - and that it will last with more or less intensity all this year.

NeuroticFish

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I think that Bitcoin dominance and the so much awaited altcoin season are overrated. I think that too few altcoins worth to be mentioned. I think that's only overly high expectation from newbies.
Or, as somebody said not long ago:

Quote from: Phil_S on April 04, 2021, 04:02:22 AM

fauzan123

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Quote from: willywilly on April 05, 2021, 03:19:33 AM

Bitcoin is still our everyday issue around the world, not only it is an investment but it is also going into our daily life.

Bitcoin price is constantly reaching high but Bitcoin Dominance is dropping.

Does this indicate that more and more people are interested in altcoins rather than only investing in Bitcoin?

The day not yet over but, the Bitcoin dominance is printing a very strong bearish candle today. Bitcoin Dominance is about to go lower. What does this mean? When Bitcoin dominance goes low, Altcoins go high!. What it means is that Bitcoin is likely to start retracing while the altcoins market starts to grow.

This is great news, as Bitcoin has been hugging all the energy, all the attention, all the funds. As Bitcoin takes its first break in months, It becomes the Altcoins turn.

Fundamentals Of

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Bitcoin dominance at 56% is not considered dropping. It changes every now and then. There is nothing to worry and significant enough to analyze with the current dominance of Bitcoin.

That 56% dominance means $1.1 trillion. That is something. The next market cap goes to Ethereum (ETH) and it is only 1/5th of Bitcoin's.

There are altcoins that came into the market with much hype. They attract a good amount of investment as well.

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Quote from: davis196 on April 05, 2021, 06:18:36 AM

The crypto market is pretty bullish and optimistic.That's why many traders are buying more altcoins.
The same thing happened during the 2017 bullish crypto market.Now,the scale is bigger and there aren't any scam ICOs.Many people are expecting DeFi to become "the next big thing" in the fintech world.
I expect lots of price bubbles in the altcoin markets followed by a bloodbath in the next few months.

I'm afraid that will happen, I worried about those latecomers who are investing altcoins right for the chase of x5, x10 profit gain. I can't really imagine how the 2017 price burst, many were crying and blaming themselves, and that might possibly happen this time again.
As the market rally keep its momentum, I expecting FOMO and surely a lot of people will ride into this. What I was waiting for now is how the market reacts to the massive growth of investors this time. I feel the risk, really, and I can't afford to join with them but rather to sell my crypto than to buy more.

buwaytress

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Dominance has held strong, and steady over the long-term. This is despite rate of growth for supply actually decreasing over the years, while altcoin supply has been growing at incredible rates. What does that tell you? That price of Bitcoin is highly competitive even with new coins and new supply being pumped out in crypto.

Dominance will be less important I feel, over time, and over cycles anyway Bitcoin holds pretty well.

davis196

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The crypto market is pretty bullish and optimistic.That's why many traders are buying more altcoins.
The same thing happened during the 2017 bullish crypto market.Now,the scale is bigger and there aren't any scam ICOs.Many people are expecting DeFi to become "the next big thing" in the fintech world.
I expect lots of price bubbles in the altcoin markets followed by a bloodbath in the next few months.

Poker Player

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I'm not too worried about it. Aside from what has already been mentioned, you have to think that we measure the dominance of Bitcoin versus the rest of all the shitcoins. I'm not worried about the best coin losing dominance relative to 10,000 shitcoins.

In the past there was a battle with Ethereum, even very early in the fork with Shitcoin Cash it was also possible to doubt whether it would lose dominance against it. So, I might worry if I see that there is a quality coin that can give the battle to Bitcoin but about the dominance with respect to almost 10,000 shitcoins.

Beparanf

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Quote from: Bttzed03 on April 05, 2021, 04:09:55 AM

Quote from: willywilly on April 05, 2021, 03:19:33 AM

Bitcoin price is constantly reaching high but Bitcoin Dominance is dropping.

I guess there are more and more fiats that are converted into cryptocurrencies but most of it are flowing into altcoins.

Quote from: willywilly on April 05, 2021, 03:19:33 AM

~ Does this indicate that more and more people are interested in altcoins rather than only investing in Bitcoin?

Risk takers are chasing x5's and x10's altcoins from different blockchains like Ethereum, Binance Smart Chain and Polkadot. You can take a look at how the TVL's (Total Value Lock) in each chain have grown over the past months. You can also add how many people are buying NFTs into the mix.

Most of the altcoins is still dumping despite of the decreasing value of Bitcoin Dominance same as Bitcoin value as well. I believe most of the traders is converting to stablecoin rather than altcoins since there is no clear sign for Altcoin season. Altcoin season is when the majority of the coin is pumping though.

Just my speculation on where the funds flowing right now. I know some coin is pumping like crazy but its not sufficient to cover all the money losing on Bitcoin Dominance.

xSkylarx

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Quote from: Lucius on April 05, 2021, 04:47:55 AM

I think that Bttzed03 explained the situation quite well, because a large part of investors currently consider BTC too expensive and looking for alternatives that can bring them much more significant profits in the short term. I would not worry too much that BTC is losing its dominance, so it was in the past where we can see that this factor was even close to 30% in January 2018.

The whole thing just proves once again that most of those involved in crypto are not reluctant to invest in any coin, it is important that there is a chance of the highest possible return on investment in the shortest possible time. No one can say that someone is stupid for buying a certain altcoin in early 2017 for only $8, and that same one is worth over $2000 today.

What if btc could reach new ATH again, will bitcoin dominance increase again? Because many are saying $70k is possible this month. Most people like me that who only have small amount to invest prefer altcoins because a 50% gain is very easy. If bitcoin dominance starts increasing again because of new ATH then this will not be good for altcoins. Many are saying it is altseason now but they are contradicting it with bitcoin being $70k. I don't think both situation can happen.

Lucius

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I think that Bttzed03 explained the situation quite well, because a large part of investors currently consider BTC too expensive and looking for alternatives that can bring them much more significant profits in the short term. I would not worry too much that BTC is losing its dominance, so it was in the past where we can see that this factor was even close to 30% in January 2018.

The whole thing just proves once again that most of those involved in crypto are not reluctant to invest in any coin, it is important that there is a chance of the highest possible return on investment in the shortest possible time. No one can say that someone is stupid for buying a certain altcoin in early 2017 for only $8, and that same one is worth over $2000 today.

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Quote from: willywilly on April 05, 2021, 03:19:33 AM

Bitcoin price is constantly reaching high but Bitcoin Dominance is dropping.

The reason that the dominance is dropping might be because people are scared that at the current price of bitcoin, it might collapse like what happened in 2017 so they are trying to diversify their portfolio so as to evenly spread the risk and continue profiting even if one of them is going down.

Quote from: willywilly on April 05, 2021, 03:19:33 AM

Does this indicate that more and more people are interested in altcoins rather than only investing in Bitcoin?

Maybe that could be the case or that they find the price of bitcoin too expensive so they choose different cryptocurrency to get more out of their initial capital.

Bttzed03

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Quote from: willywilly on April 05, 2021, 03:19:33 AM

Bitcoin price is constantly reaching high but Bitcoin Dominance is dropping.

I guess there are more and more fiats that are converted into cryptocurrencies but most of it are flowing into altcoins.

Quote from: willywilly on April 05, 2021, 03:19:33 AM

~ Does this indicate that more and more people are interested in altcoins rather than only investing in Bitcoin?

Risk takers are chasing x5's and x10's altcoins from different blockchains like Ethereum, Binance Smart Chain and Polkadot. You can take a look at how the TVL's (Total Value Lock) in each chain have grown over the past months. You can also add how many people are buying NFTs into the mix.

willywilly

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Bitcoin is still our everyday issue around the world, not only it is an investment but it is also going into our daily life.

Bitcoin price is constantly reaching high but Bitcoin Dominance is dropping.

Does this indicate that more and more people are interested in altcoins rather than only investing in Bitcoin?

https://i.imgur.com/TDO2q9s.png

Topic: Bitcoin is still hot but Bitcoin Dominance is dropping. What does it tell? (Read 248 times)