Bitcoin Dominance Hits a 2019 High of 55%, Entailing Digital Asset Decoupling or Bull Market Precursor?
Recent data on CoinMarketCap concerning Bitcoin is showing some promising information. The cryptocurrency’s Bitcoin Dominance Index has reached 55 percent for the first time this year. U Today suggests this means that the
“altcoin season might not be coming anytime soon.”
Other news outlets are questioning whether Bitcoin’s improved dominance is a precursor to a new bull run. However, expectations should be tempered at the same time because it is still very early to make such a claim.
There are also those who tend to hold back completely from any conclusions in relation to Bitcoins increase in value. For instance, Vinny Lingham, a South African crypto entrepreneur posted the following on Twitter early this month:
“Bitcoin could double overnight, but does this mean other assets should too, even if nothing has changed on their end in term [sic] of development, network etc?… How can we have a situation where the market price of one asset dictates the value ascribed to other unrelated assets, irrespective of whether or not anything changes in their own separate networks.”
Realistically, it is likely impossible to know where bitcoin is going based merely on Bitcoin’s dominance index. There are many other variables that people may want to take into account. And moreover, only time will really tell where things go from here.