Bitcoin’s Dominance Quotient Drops as Premier Currency Breaks Uptrend: Will Altseason Start?
- Prior to 2017, Bitcoin’s market dominance had never stooped below the 75% mark.
- A new study claims that if BTCs dominance quotient of 67% or more (in relation to other altcoins) is maintained for extended periods of time, most crypto assets barring a few will never be able to reach their all-time-high (ATH) values again.
As most of our regular readers are probably already aware of, over the course of the past 6-7 months, Bitcoin has been able to outperform most of its altcoin contemporaries (with the exception of Litecoin). In addition to all this, since April, the premier cryptocurrency’s market dominance has been increasing — especially since the flagship asset surged by over 300% and touched a price point of around $13,800 last month.
However, with all of that being said, it now appears as though the currency is facing a bit of a decline in its dominance ratio.
Other Key Stats Worth Pointing Out
BTCs dominance started to grow at a rapid pace after the currency showcased the emergence of a $1,000 green candle earlier this year (in April). As a result of this pattern formation, BTC experienced a massive breakout — with the value of the digital currency scaling up to an impressive $13,800.
Before Bitcoin could break past its ATH of $20k, the digital asset was faced with its first major price correction that caused the digital coin to stoop back close to the $10,000 mark.
Bitcoin’s most recent price correction caused the flagship asset’s dominance to fall from 67% to under 65%. With that being said, it bears mentioning that the same thing happened back in 2017 as well — a time when the crypto market as a whole was peaking.
Most Altcoins Will Never Hit Their ATH Values Again
As mentioned earlier, since April this year, a number of altcoins that were at one point heavily correlated with Bitcoin have diverged quite significantly. As a result of this, investors are slowly becoming aware of the fact that an ‘alt-season’ may no longer be in the offing. Instead, the likelihood of smaller blockchains vanishing into obscurity (as time passes on) seems to be the more likely outcome.
The top 30 by mcap, and the % they would *still* be down from their high, are in the chart below. pic.twitter.com/N9j6Nkqmte
— Ceteris Paribus (@ceterispar1bus) July 24, 2019