WHY IS BITCOIN DOMINANCE CONTINUING TO DECLINE
Yes the sea of red has parted again as usual. On that note I will still just be keeping an eye on the rate of flow and where it is going. The crypto market is up by 200 Billion in USD value over night. This is nothing new and the strategy isn't either. Investors are throwing money at the entire market. This has been so successful in the world of stocks that annuities were born from this concept. For those who are not familiar with annuities. An annuity is a pool that indeed buys the market. When you put value into an annuity you are purchasing fractions of shares of stocks. At least that is the selling point. The truth is that you are putting your money in a pool that is buying everything on the market. The strategy is playing on the market having growth as whole. As Warren Buffet said "if you have faith in the market, buy the market". That is exactly what firms that offer annuities do. There are more types of annuities than needed to cover while explaining the concept. The bottom line is that when you put value into an annuity you're adding to a pool of funds used to buy the market.
There are a couple interesting notes to be made about Bitcoin's market dominance. Bitcoin's dominance is down approximately 20% in the last quarter. As crypto is gaining ground becoming legitimized as a global decentralized economy Bitcoin's importance is diminishing. On many exchanges you can fund and withdraw on your account with fiat currencies directly. In the past someone had to purchase Bitcoin or a select few alt coins to enter the crypto economy. This is no longer the case and Bitcoin dominance is reflecting that. I have been watching this over the years. At first the economy was growing and naturally Bitcoin had to share this space with new emerging projects. During that time I would watch a correlation between value flowing between Bitcoin and alt coins. With acceptance of crypto by governments allowing institutional traders into this economy. The crypto economy is moving faster and on a greater scale than seen before. While I do not think that Bitcoin is going to fade away overnight I have not seen this large of a shift in Bitcoin dominance before.
FYI, somewhat related to today's topic. While governments have accepted Bitcoin as a method of payment in the past. El Salvador has passed a bill making Bitcoin legal tender today June 9th 2021.
My prediction is that we will see a spike in Bitcoin's value. I have been watching this market for too long to make any greater speculation than that. I am interested to witness the outcome of this major first in Bitcoin history.