BTC went below 50% again!
Dear Steemians,
almost unnoticed, the market capitalization of Bitcoin went below the psychologically important 50% mark and is currently at 48,4%.
The big difference compared to mid June 2017 (when the BTC dominance fell below 40%) this time is, that there is no single alt coin threatening BTCs dominance, like it was Ethereum last time. The second biggest digital currency is Ethereum with just 13%.
So no "flipping" in sight (the switch to a certain coin having a dominance of 50%).
The reason? No clue. We currently see a massive pump into almost any crypto (including Steem fortunately!). The total market cap (incl. BTC) tripled over the last 4 weeks from 200B$ to >600B$. Truely amazing and not expected by anyone as far as I know!
I guess lots of FOMO going on as crypto starts to reach mass adoption and everybody wants to get in. Certainly unhealthy, especially the ridiculously high transaction fees of BTC are not helping.
My advice: follow closely and prepare to switch into the selloff mode! Set limit orders to be on the safe side.
What is your guess for the years end BTC price? Will it go back to 19K?
this isn't coming as a big surprise imho. Several altcoins are superior from a technological point of view, and BTC was not really able to adopt stuff or to solve its own problems with transaction cost&speed and the insane mining diff that leads to massive use of electricity.
Others are better, and thus they are catching up. Still, as everyone pumps into the market at the moment, BTC also gained a lot. For now, the loss is relative. BTC will stay on top for some time, as it has the most historical value and the biggest community, but without adressing its problems it's a question of time before others take over.
I agree, just that often not the superior product survives but the one which is better known or better marketed.
true enough. Anyway, spreading investments is the rule #1. Whoever survives, we will win^^
I`m following this, too, and I posted about it. I think we may well witness a paradigm change here.
In my view, the BTC futures trading, that started 10 days ago, has desillusioned many people. They regarded BTC as a currency that cannot be compromised by the manipulative action of Wallstreet and the banksters. Seeing that it has fallen victim to exactly that now, they turn away from BTC into other altcoins.
And I believe that was exactly what was intended by inventing the BTC futures trade.
I think we have not seen the last of that. If the BTC price gets pulled down by falling prices of BTC futures, there will be a huge run for the exits - which in turn makes the BTC price drop like a brick.
For other cryptos - like Steem for example - that may become a new dawn. But under all circumstance they have to prevent that they also get traded as futures or such, else they will see the same effect as BTC.
Yes, this downward spiral triggered by the futures is a realistic scenario, but also possible that the HODLers will prevail until Lightning Network is established and again confidence in BTC is regained.
Maybe right now, just some weak hands are getting out or some profit takers want to diversify into alts and BCH, I think still strong demand into BTC is there. At 16K seems that a bottom is building.
Yes, there are some rock hard believers who will stay in BTC whatever happens, just as there are for gold and silver. But the majority will panic if the price goes near 10k or below. Especially those who jumped on the band wagon just lately.
But we'll see.... whatever happens, it will be positive for the alt coins that remain uncorrupted. And Steem is one of them.
I agree with you , subscribed on you, will read your forecasts)
Thank you, well I typically don´t do forecasts a lot.
I am surprised that nearly all altcoins are pumping, not only the ones that noob traders can buy at coinbase. General FOMO? :)
I don't see the 50% mark as psychologically important for BTC dominance but can see that people are getting unhappier with transaction fees and a massive amount of unconfirmed transactions.
The "Flipping" happened more or less to Bitcoin-Cash... nearly + 48 % in 1 day gaining ;-)
Yes, by a massive manipulative act (Coinbase). Not convinced that the BCH pump continues.