The dominance rate for Bitcoin (BTC) is a very interesting indicator. It is solely based on the circulating Bitcoin (BTC) supply and the flagship's current blockchain asset price. Despite the fact that the price doesn't reflect the demand for Bitcoin (BTC) or its intrinsic value, it can be treated as a sign of the 'alt season' beginning and end.
Cryptocurrencies trader, analyst, and educator The Moon (@TheMoonCarl) excited his Twitter audience with his extremely maximalist prediction on the dominance upsurge for Bitcoin (BTC). He is sure this indicator may go through the roof by the end of the current market depression.
Should this prediction play out, the market capitalization for Bitcoin (BTC) (combined price of all Bitcoins (BTC) in circulation) will account for 90% of the total cryptocurrencies market capitalization.
First of all, 90% is a very large number. The last time the dominance rate for Bitcoin (BTC) stayed above this level was more than fifty months ago in January of 2016.
At that time, an orange coin traded at about $400, while Ethereum (ETH) was under $2. It is also worth noting that in the last few months, this indicator wasn't volatile at all. It has stayed between the 60-70% zone since June 2019. So, an upsurge to 90% would mean an enormous breakthrough for the largest cryptocurrency.
The Moon Carl isn't the only expert to predict that the Bitcoin (BTC) dominance rate is to rise above 90%. Recently, Qiao Wang, angel investor and Director of Product with the Messari cryptocurrencies research team, announced that Bitcoin (BTC) has enough power to raise its dominance rate to 90% by the end of the ongoing market depression.
According to Mr. Wang, there will be no demand for altcoins during the months of crisis since 'when everyone loses their job, speculation is dead'.
So, the dominance upsurge Bitcoin (BTC) isn't as good for the price of Bitcoin (BTC) as it is bad for the price of altcoins.
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