Cryptocurrency

Bitcoin dominance reached a low for the year – Altcoins Season already in the star holes?

The Bitcoin price is wacker than the 11,000 USD limit and is currently showing a sideways movement. This breather provides plenty of room for the Altcoin market to have erupted in the last few days. Many Altcoins were able to secure decent profits and have reduced automatically the Bitcoin dominance on Coinmarketcap. This is currently at the lowest level since July of 2019.

Bitcoin domination falls to a new low for the year

Many investors always pull back the Bitcoin domination, in order to detect early in an Altcoin Rally. In the last few weeks, it was mainly due to the DeFi sector for many Altcoins to the top. As a result, the BTC dominance was affected and is currently fallen to the lowest level since mid-2019. Currently, the Bitcoin dominance is about 60.8% with the downward trend.

The BTC dominance is calculated from the quotient of the Bitcoin market capitalisation and the market capitalisation of all Cryptocurrencies, which are listed on Coinmarketcap. So, if new Altcoins come to that, increases the total market capitalization, and the dominance of Bitcoin continues to fall down.

Real BTC dominance is much higher

But we must not forget, however, that it is in many projects, Scams, or simple Money Grabs. Many ICOs have only collected a single goal – money from the naive investors and enrich themselves. Accordingly, these projects will disappear in the future.

In addition, the real Bitcoin dominance is much higher, which have already established various analysts. Because in the end Token or tokens should have a relatively high market capitalization but with little trading volume, not in the calculation, the total market capitalization are included. Therefore, the real BTC dominance is diluted at this point strong. How much is the right Bitcoin dominance is to be found here.

DeFi Hype drives Altcoins up

It is clear, however, that the current Hype about Decentralized Finance (DeFi) has important and there is still no end in sight. Therefore, will probably continue not to be, as long as Bitcoin and Ethereum move the price up or down, many DeFi projects benefit from the DeFi Hype. One could speak of Altcoins Season – better DeFi-Season said.

Nevertheless, Bitcoin remains unchallenged at the top, and is legitimized by the growing interest of the institution Ellen investors. BTC is slowly losing its negative reputation and is increasingly becoming a mainstream financial product, in order to diversify its Portfolio further. There are many reasons why you should take Bitcoin to a certain part of his Portfolio. BTC continues to be determined by the market and the clock is. Accordingly, a share in Bitcoin is for the long-term investment horizon, certainly not wrong. It currently has currencies the lowest risk of all Crypto.

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The comments in this article do not represent any trading recommendations or investment advice.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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