In my opinion the only reason we saw such a massive divergence from the normal (normal being: 80% average Bitcoin dominance, naturally, as most alts are scams) was due the big ass Ethereum bubble. Just look at the chart in here:
https://coinmarketcap.com/charts/#dominance-percentage
So when Ethereum pumped hard and took a big chunk off Bitcoin's dominance, mostly noobs, thought: "Oh wow, the flippening might actually happen". Which lead some other noobs to believe "if Ethereum can do this then there must be other altcoins that will pump too and defeat Bitcoin". This started the infamous chain reaction which made BTC dominance go as low as %33.
I think people are slowly catching up to the fact altcoins are basically scams designed to steal them their Bitcoin. Of course I believe some altcoins have some value and are doing some interesting useful research, but there's a big difference from that to pitching it as "the next Bitcoin", screaming "flippening" and so on, that's just criminal.
Topic: BTC Dominance (Read 336 times)
Altcoins have always on the whole followed the BTC price but with higher variance. So if you bought a basket of altcoins, I'd expect it to behave similarly to a leveraged BTC position; when BTC rises, altcoins rise more and the BTC dominance decreases, and when BTC falls, altcoins fall more and the BTC dominance increases.
Exactly.
In general altcoin investments due to their tie to Bitcoin could be seen as a cheap investment in Bitcoin (without actually investing in it) with a 2-3x leverage applied. But of course, it works both ways; big profits and big losses.
Bitcoin -5.30%
Ethereum -14.5%
XRP -13%
BCash -8.46% (will mostly follow Bitcoin closer than any other altcoin for obvious reasons)
EOS -12.3
People however shouldn't get used to Bitcoin's dominance above 50% because it was meaningless at 40% and is still as meaningless at 50%.
so whats the connection between bitcoin dominance and altcoin price drop everytime price drop bitcoin / altcoin bitcoin dominance goes upper and upper is this a game or due to Market Cap
Bitcoin is most real world used concurrency, that is why is most stable. Stable means that when price goes up it goes up least and when price goes down it goes up least. Now we are in bear market and prices of crypto coins goes down so Bitcoin dominance is increasing. 50% is not that huge. Until early 2017 it was most of time over 80%.
OP, because the people see the need to trade and convert their "coins" in a secure and safe store of value during bad market conditions. Bitcoin.
The opposite takes place if in a bull market, with most wanting to hold faster moving altcoins to reap more profit.
The opposite takes place if in a bull market, with most wanting to hold faster moving altcoins to reap more profit.
What do we expect this is how the market perform in the first place and all recent Altcoins really in base on bitcoin so if we will say dominance towards all then we can be sure that bitcoin will stay on the top, But if there come a time that a coin will be made and not in the image of bitcoin then I really think that can be settle as an effective rival for bitcoin, But further more Altcoins will still be Alternative and will fall down behind bitcoin.
The correlation between BTC and altcoins are positive.
so whats the connection between bitcoin dominance and altcoin price drop everytime price drop bitcoin / altcoin bitcoin dominance goes upper and upper is this a game or due to Market Cap
The price dominance of bitcoin over other types of crypto currency actually does exist and it depends on the high level of bitcoin capitalization. I do not know how anyone, but I do not like this situation at the crypto currency market at all. In fact, we do not have a free crypto-currency market yet. Bitcoin had problems, it fell in price and the whole market is stagnant this year. I would have wanted bitcoin to lose its capitalization.
In the past, altcoins would generally underperform bitcoin over medium time periods. In terms of USD, it would often both rise and fall when bitcoin did the same.
In the later half of 2017, many major alts were significantly outperforming bitcoin, by a fairly large margin. I suspect this was due to financial speculation in the crypto markets. This year, alts have generally underperformed bitcoin, especially when the price was falling. I suspect this is a result of speculative money leaving the crypto markets.
I have noticed as if lately that there have been periods of days in which alts would dump, while bitcoin would hold steady that was followed by both bitcoin and alts declining. I suspect this is people selling alts for USD and BTC and subsequently selling the BTC they received.
In the later half of 2017, many major alts were significantly outperforming bitcoin, by a fairly large margin. I suspect this was due to financial speculation in the crypto markets. This year, alts have generally underperformed bitcoin, especially when the price was falling. I suspect this is a result of speculative money leaving the crypto markets.
I have noticed as if lately that there have been periods of days in which alts would dump, while bitcoin would hold steady that was followed by both bitcoin and alts declining. I suspect this is people selling alts for USD and BTC and subsequently selling the BTC they received.
Altcoins have always on the whole followed the BTC price but with higher variance. So if you bought a basket of altcoins, I'd expect it to behave similarly to a leveraged BTC position; when BTC rises, altcoins rise more and the BTC dominance decreases, and when BTC falls, altcoins fall more and the BTC dominance increases.
so whats the connection between bitcoin dominance and altcoin price drop everytime price drop bitcoin / altcoin bitcoin dominance goes upper and upper is this a game or due to Market Cap
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