Even as the crypto bear market continues to roar one persistent theme has become extremely reliable: Bitcoin Dominance. In fact, it has become the metric de jour across media platforms and within crypto circles. This theme has made institutional players cast a wary eye at any digital asset other than Bitcoin itself.
Thus, the continued destruction of the alt-coin market; with no relief in sight.
At the time of writing this, Bitcoin dominance – or its share of the coin market cap percentage is now above 50 percent – the highest since mid-December 2017. According to CoinMarketCap, the total market capitalization of Bitcoin is currently valued at $105 billion.
Thomas Lee, Co-Founder & Head Analyst at Fundstrat Global Advisors, recently noted that rising Bitcoin dominance is a sign that a recovery is in order.
The sharp decline in Bitcoin’s price $6156.22 +0.06% was purportedly triggered by the SEC’s announcement that they will delay the decision on the much anticipated Cboe-backed VanEck/SolidX bitcoin ETF proposal. Oddly enough, though, this move was well anticipated and expected.
Apart from that, the last few weeks saw a string of positive news, which failed to trigger any positive price movement.
ICE announced a new project – a digital asset platform dubbed Bakkt in collaboration with marquee companies such as Microsoft, Starbucks, BCG, and others. According to popular cryptocurrency trader and owner of investment firm BKCM LLC Brian Kelly, this was the “biggest news of the year for Bitcoin.”
Goldman Sachs is reportedly going to start managing Bitcoin for its clients, responding to their serious interest.
At the same time, with hashrates at records highs, SegWit adoption continues to grow as its share of all BTC transactions is now above 40 percent, another all-time high.
Whether fresh highs in Bitcoin dominance is any sort of marker for a turnaround in the crypto markets is a question yet to be answered; crypto bulls will point to anything in hopes of breaking the overwhelmingly bearish trends. Is there a clear way to play (profit) from Bitcoin dominance? Sure, buy the fu**ing dip!! BTFD!