Oct 05, · BTC dominance is the percentage of the total cryptocurrency market capitalization that Bitcoin takes up at any given point in time.. But what exactly does this mean? You have probably seen this percentage while you are on Coinmarketcap: You may not have given it much attention – or any attention at all – but the percentage of bitcoin dominance can give incredible insight into the. Nov 09, · In the world of cryptocurrencies, there's one metric that many crypto traders keep a close eye on: Bitcoin dominance. CoinMarketCap has been tracking it for years — and it takes pride of place at the top of our homepage. rows · Top cryptocurrency prices and charts, listed by market capitalization. Free access to .
Coinmarketcap bitcoin dominance% - Real Bitcoin Dominance Index: Chart & History
With the majority of initial coin offerings ICOs being issued in , it makes complete sense why BTC dominance is decreasing. But why did it increase from If BTC dominance was decreasing when people were buying all the new altcoins, then why did it starting increasing again? Because people started selling and converting their altcoins back to Bitcoin! And I mean literally everyone was talking about Bitcoin when it was rallying and doubling, tripling, quadrupling its value within a week.
Because of the fear of missing out FOMO on the gains that they heard stories about on the news, everyone bought in. And, of course, since the vast majority got their information here, they were aware of pretty much only Bitcoin, since it was the first and biggest cryptocurrency by far; thus, the digital asset that the focus and limelight were on. And so after Bitcoin dominance originally declined because it had to share the market with the new altcoins, it then increased sharply when the masses began creating addresses and buying solely Bitcoin.
People heard that it was possible to become a millionaire within a year — heck, even a few months! And so everyone was sold on this idea and the masses invested. And when this happened, BTC dominance shot back up — almost doubling from the summer of to the end of that year.
So what people decided to do was to use their Bitcoin earnings to invest in altcoins. They figured that if they could leverage their BTC gains by converting their highly-valued Bitcoin to a low or even micro-cap altcoin, said altcoin could explode in price and they could become very, very rich. And so, of course, BTC dominance sharply declined once again, as the people who had Bitcoin sold it off in exchange for another cryptocurrency. When this happened at the end of and the beginning of , the price of Bitcoin came down as quickly as it went up because the money that came in to inflate the price was quickly coming out.
And this increased FUD — fear, uncertainty, and doubt. Now that we know how BTC dominance affects the markets , how do we take advantage of this knowledge? You must understand that the trend I just showed you — what happened in — is a trend. All we need for Bitcoin to rally again is some sort of catalyst to get people and the media talking once more.
When this happens, people will buy into Bitcoin again, and the price and dominance will both rise. Which will make Bitcoin dominance decrease and the price to be readjusted once more — yet, at a higher level than before the rally. Then, with this increased value of Bitcoin at its peak, buy into the altcoins you believe will rally. Then, as the altcoins rise and BTC dominance decreases , you can choose to cash out , HODL, or convert back to Bitcoin when you have made a sufficient amount of profits.
And if you are able to use this knowledge to be one step ahead of the herd, then you, my friend, are laughing straight to the bank. I had no idea what Bitcoin dominance was or how it worked , and I had no idea how valuable analyzing it could be.
Just remember that making gains off the fluctuation of BTC dominance is all about timing. As an alternative to Coin Market Cap, where all coins are shown, Bitcoin Dominance only tracks the coins that are attempting to be used as a medium of exchange i. Because of this, we give you the option.
If or when Ethereum moves to a proof-of-stake consensus algorithm, it may be removed from the index entirely. Bitcoin Dominance. Buy bitcoin. Real Bitcoin Dominance Index Today Weekly High Weekly Low The Real Bitcoin Dominance Index calculates Bitcoin's market share among proof of work coins attempting to be money.
It excludes all ICOs, stablecoins and other centralized projects. It does not include ICOs or stablecoins.