Cryptocurrency markets are extremely volatile and unpredictable. This is the first thing that most people know about the crypto-trade. From $950 to $19,000 and back to $6000 – Bitcoin prices have been quite mercurial. However, despite the condition of the markets – Bitcoin continues to be the most trusted and credible cryptocurrency, as observed by the Bitcoin Dominance rate.
As a trend which has been observed time and again, almost all cryptocurrencies (with a few exceptions) tend to boom and bust at the same time. When the Bitcoin prices are on a rise, all cryptocurrencies are green and tend to be profitable – the exact opposite thing happens when Bitcoin crashes.A graph showcasing the rise of Bitcoin dominance in 2018
Markets, over the past three months, have massively slowed down. The direct impact of this slowdown can be seen on Bitcoin’s dominance. Bitcoin’s market dominance is currently at 44.44% – this means that out of all the money in circulation in the cryptocurrency markets (currently $317 Billion), 44.44% of that amount is in Bitcoin holdings. This means that out of the 317 Billion USD that are in circulation in crypto investments, Bitcoin’s market share is 140 Billion, making it the strongest cryptocurrency by market cap in the markets.
Basically, when markets are on a high, people tend to diversify their holdings and invest into newer cryptocurrencies. However, the moment markets begin to crash, altcoins begin to lose value and money starts flowing towards Bitcoins! This is because Bitcoin prices are considered to be more stable as opposed to other cryptocurrencies. Bitcoin is also proven to bounce harder than other currencies in terms of real value.
Bitcoin’s dominance fell to a low of 32.46% earlier in January – but has since been on a constant rise. The current high of 44.44% is just a small drop from the year’s highest point, which was at 45.02%, less than 24 hours ago. At this rate, if the markets continue to be on a slow growth phase, Bitcoin dominance might even rise to over 50% soon!