Bitcoin Dominance Breaks Down As Altcoins Begin to Rebound
Altcoins like Ethereum, Litecoin, and XRP have struggled to recapture lost market share from Bitcoin in 2019. This has been reflected by a sharp increase in Bitcoin dominance – a metric that has increased steadily throughout the year.
But as Bitcoin dominance begins to break down from recent highs, altcoins have begun to show signs of life once again, and some crypto analysts believe that a recovery may be ahead for altcoins now that Bitcoin has started to correct in a big way.
All this year, Bitcoins parabolic rally has been like a vacuum for altcoins, sucking out whatever remaining value they have left after falling as much as 99% in some cases to their bear market lows.
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As Bitcoin climbed higher and higher, both the USD value and the BTC ratio in altcoins began to fall. But now that Bitcoins bullish rally has come to an end, Bitcoin dominance – a metric used to weigh Bitcoins market cap against the rest of the alts in the space – has also started falling, and it could open the flood gates for altcoins to rally.
BTC dominance reached a peak of over 70% in early September and has been steadily declining since. This week, Bitcoin dominance fell to under 67% and appears to be ready to plummet lower, especially if altcoins continue to rally.
The drop in BTC dominance coincides with a rise in the value of many of the top altcoins. According to altcoin charts, the asset class appears to be bottoming – especially when it comes to major alts such as Ethereum, XRP, or as one crypto analyst points out, Tron or IOTA.
On the day, Tron, EOS, and Chainlink are all up 9% or more, while XRP trails right behind with 7% growth over the last 24 hours. These alternative crypto assets have all gained against the leading crypto by market cap, with their BTC ratios also being up as much as 6% on the day.
Given that altcoins have been stuck in a downtrend for nearly the entire last two years, selling pressure is starting to dry up, and the low liquidity markets of each altcoin are ripe and waiting for a whale to come in and start making waves once aga ...