Why according to the dominance of BTC, altcoins may see another wave of gains

The dominance of BTC has always had an opposite effect on the price trend of altcoins. Historically, the dominance of BTC has determined the direction of fluctuations in the value of altcoins. So far, Bitcoin has maintained a majority dominance in the market. But over time, as the demand for altcoins increases, this dominance will decline.

The dominance of BTC only shows how much demand for Bitcoin is compared to altcoins. The more BTC’s dominance rises, the lower the demand for altcoins. This means that for altcoins to rise further, demand for bitcoin must fall.

Related Reading | Ethereum broke the milestone of 200,000 validators, more than $14 billion is now bet on ETH 2.0

Over the years, as more and more investors put their money into altcoins, this dominance has declined. One reason for this is that many investors believe that they have missed the opportunity of Bitcoin and are therefore trying to enter the altcoin as soon as possible.Others revolve around the new technological advances that are being made Altcoins project. Therefore, investors invest money in projects they believe in.

How the current dominance of BTC affects altcoins

In the past few months, the dominance of BTC has been declining. Bitcoin currently occupies a dominant position of 48.97%, which is now less than half of the overall market dominance. This trend indicates that the demand for altcoins is rising. Therefore, the dominance of BTC will continue to decline.

With the decline in dominance, the value of altcoins will continue to rise. Market trends indicate that BTC’s dominance is expected to decline after the recent recovery.

BTC dominance currently sits at less than 50% | Source: Market Cap BTC Dominance on TradingView.com

When this happens, the demand for alternatives is expected to pick up soon.Trigger another wave of rising Altcoins market.Coin like number 2 coin With the project’s notoriety in the investment field, it is expected that Ethereum will gain greater dominance. With ETH 2.0, the network will move to proof of stake and use less electricity for mining. Reducing the impact on the environment means that mining will no longer be a problem.

What does this mean for Bitcoin

Alts gaining more dominance does not negate the value of Bitcoin. Currently, there are more than 5,000 coins on the market competing for market share. Some of these projects carry some very innovative ideas and technologies. Therefore, it is expected that some of these projects will become popular over time. Therefore, as more and more investors enter the market, gain more market share.

Related Reading | Brian Kelly of Fast Money is still bullish on Bitcoin, that’s why

The decline in BTS’s dominance simply means that Bitcoin is not the only digital asset that investors are eager to enter.Despite the decline in dominance, Bitcoin is still number one coin in the market. Being the first cryptocurrency and the reason why cryptocurrencies are so popular at the moment.

But with the rebound of altcoins in what is commonly referred to as the “altcoin season”, Bitcoin’s dominance will continue to decline. As interest in altcoins increases, this will translate into a substantial increase in the price of altcoins.

Featured image from CryptoPotato, chart from TradingView.com

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *