According to Twitter account @skew_markets, Bitcoin’s dominance index has broken 70%. It hasn’t been this high since 2017.
Bitcoin dominance index > 70% – closing the gap opened in 2017 pic.twitter.com/tX74NAqVhG
— skew (@skew_markets) September 5, 2019
Essentially, Bitcoin’s market cap, which is currently sitting at $189 billion, makes up for 70.55% of all the money put into cryptocurrencies in general. As of this writing, the total market cap for all cryptocurrencies is sitting at $266 billion. So, around $77 billion sits in altcoins like Ethereum or Litecoin.
While Bitcoin has been having a relatively great year regardless, there are still a few things to note regarding its overall dominance. For one, altcoins, while not tied to Bitcoin’s value per se, are notably affected by it most of the time. That and many altcoins are only accessible through a Bitcoin trading pair, which does contribute to the asset’s dominance and trading volume.
Related: Looking to buy and sell Bitcoin? Check out our guide on the best cryptocurrency exchanges for trading Bitcoins.
From 2013 to early 2017, Bitcoin was sitting at or around 90% market dominance, but this is largely because of the lack of altcoins in development as well as the world’s general lack of exposure to cryptocurrencies.
Of course, a rise in dominance doesn’t necessarily mean that Bitcoin is rebounding, either. For example, you may see a group of investors put a ton of money into Bitcoin only for them to convert those funds into an altcoin just a day later. That’s why it’s important to consider Bitcoin dominance in your trading decisions, but not to view it as the only factor. Other statistics, like trading volume and the MACD, are important to consider as well.
What do you think about the resurgence of Bitcoin’s dominance? Is it about time the asset hit over 70%? Let us know your thoughts in the comments below.
Images are courtesy of Twitter, Shutterstock, CoinMarketCap.