BTC Dominance Is Growing Again. What Does This Mean For Altcoins?
We are keeping a close eye on BTC dominance because it can indicate the start of a new altcoin rally. Historical events show that every time BTC dominace is high altcoins go on a run resulting in new all time highs for the total marketcap.
In this table you find BTC dominance VS the total marketcap. Everytime BTC dominance is high, altcoins go on a rally resulting in a higher total market cap.
|Date||BTC dominance||BTC price||Total Market CAP|
|1th of March 2017||86%||1207 USD||22.313.000.000|
|19th of June 2017||38%||2599 USD||111.563.000.000|
|1th of August 2017||51%||2864 USD||92.162.700.000|
|2th of September 2017||45%||4854 USD||178.928.000.000|
|6th of November 2017||62%||7304 USD||199.324.000.000|
|25th of November 2017||52%||8264 USD||265.377.000.000|
|8th of December 2017||66,5%||16066 USD||400.166.000.000|
|8th of January 2018||33,5%||16133 USD||828.537.000.000|
The 1th of March till the 19th of June
At the 1th of march 2017, Bitcoin reached a historical high dominance of 86%. Within 3 months BTC dominance tanked to 38%, the market cap gained 4,5 times, and the BTC soared over 200%. The high dominance of BTC resulted in attention for the total market, as well new investors. New investors always look for new opportunities so started to invest in promising projects. Notable is that Ethereum and ´other (all small alts together)' gained the most during this period.
The 1th of August till the 2th of September
During this period BTC dominance did go from 51% to 45% while BTC price almost doubled. The same happened to the marketcap that did go from 92billion to 172 billion dollars. As we can see, BTC and altcoins dominance were almost the same in this period. This is easy to explain because cryptocurrencies received major attention during that period.
The 6th of November till the 25th of November
BTC, again, lost dominance while rising in price. Bitcoin Cash was the big winner in dominance on the 12th of november and after that the total market did rise in value. Why BCH soared is explained in this article: https://www.forbes.com/sites/laurashin/2017/11/12/bitcoin-cash-skyrockets-bitcoin-price-drops-as-civil-war-continues/#6c5b3d3f35b5
The 8th of december till the 8th of january
At the 8th of December BTC dominance peaked at 66,5%, what was the start of the biggest bull run of 2017. In only 1 month, the market cap did go from 400 billion to 828 billion. BTC price also soared over that time, but the biggest winners were the altcoins.