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What is this #Bitcoin 
https://abs.twimg.com/hashflags... draggable="false" alt=""> dominance everyone keeps talking about on your thread?!
A quick educational thread, feel free to retweet or add a comment if you have any questions.
As you might have heard, Bitcoin& #39;s dominance is decreasing by the day.
But what does that mean?
A quick educational thread, feel free to retweet or add a comment if you have any questions.
As you might have heard, Bitcoin& #39;s dominance is decreasing by the day.
But what does that mean?
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In a nutshell, Bitcoin dominance is the ratio between the market cap of Bitcoin vs. the market cap of all altcoins.
For example, if the market cap of all cryptocurrencies (including BTC) is $200 Million and BTC market cap is $100 Million, BTC dominance is at 50%.
In a nutshell, Bitcoin dominance is the ratio between the market cap of Bitcoin vs. the market cap of all altcoins.
For example, if the market cap of all cryptocurrencies (including BTC) is $200 Million and BTC market cap is $100 Million, BTC dominance is at 50%.
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Why does it even matter?
Simply put, when Bitcoin dominance goes down, other cryptocurrencies normally go up in price (an opportunity for traders and investors).
When there& #39;s a prolonged period of low BTC dominance, we even declare an »altcoin season«.
Why does it even matter?
Simply put, when Bitcoin dominance goes down, other cryptocurrencies normally go up in price (an opportunity for traders and investors).
When there& #39;s a prolonged period of low BTC dominance, we even declare an »altcoin season«.
4/
Take a look at the history of BTC dominance.
You will notice that it was quite high in the first years after introduction (mostly above 90%) and at an all-time low of 33% in the start of 2018, when altcoins first started popping off.
Take a look at the history of BTC dominance.
You will notice that it was quite high in the first years after introduction (mostly above 90%) and at an all-time low of 33% in the start of 2018, when altcoins first started popping off.
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This year the BTC dominance was mostly hovering between the 60% and 70% mark.
Until it really started following the downtrend in the middle of March.
In the past few days, we’ve dipped under 50% for the first time since 2018!
This year the BTC dominance was mostly hovering between the 60% and 70% mark.
Until it really started following the downtrend in the middle of March.
In the past few days, we’ve dipped under 50% for the first time since 2018!
6/
With Bitcoin dominance sliding ever lower, we can predict a full-fledged altcoin season approaching us very quickly.
With Bitcoin dominance sliding ever lower, we can predict a full-fledged altcoin season approaching us very quickly.
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BTC dominance has a few downsides/flaws though.
Allegedly it doesn’t account for the Bitcoin that has been lost or stolen and it fails to factor BTC’s deep liquidity;
an altcoin might have a huge, artificially inflated valuation that eats away at BTC dominance.
BTC dominance has a few downsides/flaws though.
Allegedly it doesn’t account for the Bitcoin that has been lost or stolen and it fails to factor BTC’s deep liquidity;
an altcoin might have a huge, artificially inflated valuation that eats away at BTC dominance.
8/
Key takeaways:
1. BTC dominance can give you a hint in how much exposure you should have to altcoins
2. You shouldn& #39;t put all your eggs into one basket
3. Altcoin season is almost upon us
Key takeaways:
1. BTC dominance can give you a hint in how much exposure you should have to altcoins
2. You shouldn& #39;t put all your eggs into one basket
3. Altcoin season is almost upon us
