Bitcoin dominance has just crossed 70%. Here’s the surprising reason why that’s GREAT news for altcoins.
On the face of it, Bitcoin’s dominance of the entire cryptocurrency market doesn’t seem like great news for altcoin bag holders.
However, history shows that the metric could actually predict a bright future for altcoins.
The last time Bitcoin crossed the 70% mark, it immediately plunged and alt season took over.
It accounted for less than one-third of the entire cryptocurrency market by March 2018.
Bitcoin Birch, one of the founders of Lunar made the relationship plain with this tweet:
$BTC dominance about to break 70%
The last time it did that was March 2017, right before it fell off a cliff and the biggest ALT season in history kicked off…
— Bitcoin Birch 👨💻 (@BitcoinBirch) August 30, 2019
Of course, past performance is no guarantee of future returns, so it’s entirely possible that Bitcoin’s dominance will keep increasing until it hits 95%.
Personally, I don’t think that’s going to happen, however, it is definitely possible.
Bitcoin has many faults but has proven remarkably resilient.
New data from IntoTheBlock shows that around three-quarters of all Bitcoin addresses bought into the coin when it was trading for a lower price than currently.
In fact, the average buy-in price was just $123 and almost 7 million people managed to get ahold of some Bitcoin for less than $845.
Unlike Ethereum, this means that most Bitcoin holders aren’t hoping to recover losses and will sell out the minute the price increases.
The good news for altcoin holders is that Bitcoin dominance has just crossed 70%.
While this may sound like bad news, the last time Bitcoin crossed the 70% barrier it immediately plunged and hit just over 33% by March in 2018.
So it’s entirely possible that altseason is on the way.
Crypto analyst Willy Woo believes that altcoins may soon find some support.
He posted on Twitter a chart that shows the altcoin capitalization to Bitcoin capitalization.
After all the shitcoin carnage, alts may be heading into a region of support. Top line is Alt Cap to BTC Cap Ratio (an alternative view to dominance). Bottom line is the ratio of Alt market volume to BTC volume at the exchanges. pic.twitter.com/CedGUHMhjo
— Willy Woo (@woonomic) August 21, 2019