Savage BTC Dominance

in #blockchain6 years ago (edited)


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The Savage Nature of Bitcoin Dominance

Bitcoin hit 50% for the first time in 2018 on August 11th and as of today September 8th it has risen above 55%. It is going on one month since BTC dominance has been over 50%. Dominance has been stuck in a narrow range from 50% to 55% consistently and the market it showing no sign of pulling back below 50% any time soon. The rise in bitcoin dominance has thrown the market into an even more volatile and unpredictable state given the state of looming etf’s, the introduction of more major institutional investors and concerns over the viability of many coins in the top 100.

The speculation of the bitcoin cash controversy and the introduction of many well-known mainnet releases including EOS, Tron, and Vechain are just the tip of the iceberg. Ever more sinister is the speculation related to Ethereum such as the implementation of plasma, sharding, the worrisome difficulty bomb and the lasting uncertainty of the dao hack. So how is this all to play out? Was Ethereum just a half brained scheme?

It would be completely devastating to the crypto market as a whole if this was the case, especially since the US government took the time to dismiss Ethereum specifically from the list of potential securities trading legal snafus. With so much fanfare behind Ethereum and ICOs success hedging on the scalability of Ethereum, it would be mind boggling for the project to simply give up the ghost and leave millions of investors short stacked. However unlikely this scenario is, one must remember: crypto is for savages only.

Does this mean it is time to buy the dip? Many bearish investors are taking this opportunity to short on Bitmex. Shorting on Bitmex has become the latest trend and may be the most attributable to the latest in Bitcoin dominance trends. As the bear market has dominated in 2018, the buy the dip strategy has lost its luster. Many a moonboy has lost their short sighted investments playing into the hands of youtube shillers and dabbling in the labyrinth of margin trading. So what are the whales planning next? Have we hit a psychological bottom? Is this market manipulation or just a complex evolution of market strategy on the part of retail and accredited investors?

A few lingering thoughts on the subject …

-Your average hodler buying on the dip is under water.

-A massive influx of investors are shorting BTC on Bitmex.

-The altcoin beat downs have been devastating retail markets.

-Bitcoin trends have been showing an inverse correlation to USD.

-Bitcoin has remained the premier contender for a decentralized monetary system.

-Ever since Bitcoin began to rise above 50% dominance in August 2018, it has stayed in a tight range near the mining cost.

https://twitter.com/TravelBehemoth/status/1033942861979344896


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