Bitcoin Forum

I noticed that if BTC has a big dominant rate the entire crypto is bad, in short it looks bullish.
Though the rate now is very consistent to 50% and above, what do you think will happen to the market if it will drop that low.

Will this gives a bad or good effect to BTC and Altcoins?

what people mistakenly call "dominance" is market capitalization ratio and if bitcoin's MCR drops to 40% or even 1% absolutely nothing will change because market cap is meaningless when it comes to altcoins specially when there is nearly 3000 of them producing useless tokens with a click of a button.

if bitcoin real dominance drops to 40% then it shows that bitcoin has lost the market to competition BUT so far bitcoin dominance is nearly 100% and we have a long way to go before even getting close to 50% let alone 40% and there is no competition so far.

The marketcap is the only basis when I tried to analyze things, I'm really as good as other traders who very smart with their TA.
I noticed that during the bull run, the marketcap showed BTC dominance of only 40% or over and the market really looks good at that point.
So, in case it will drop again, it should mean a good price for every coins.

Note : during the last bull run, even shitcoins made a rally also, so it could happen again IMO.

If we're talking about fundamentals, then nothing. If were talking about the markets, it just means that people are allocating more of their BTC to other coins/tokens. If I remember correctly, bitcoin having lower market dominance(based on the marketcap statistic) occurs mostly in bull markets. For the answer though, I think it's pretty much neither good or bad.

When there is drop in the dominance of bitcoin, in one way or other some other altcoins is getting its increase in the dominance level. This is a form of loss in strength, automatically there'll be some impact on the price if such scenario exist. When ethereum dominance increased nearing to bitcoin the growth was tremendous with ethereum.

Thats mostly the case. People tend to diversify their investments to alts that has of low value than Bitcoin. Although, It may drag down some of its percentage but It doesnt really affect Bitcoin's dominance too much though.


True that, I even made a hundred dollars out of shitcoin during that time.
 

The price changes that occur in Bitcoin will definitely have a major impact on the sustainability of the crypto financial system.
this is because Bitcoin has a very large market share so anything that happens to Bitcoin will definitely have an overall impact.
And vice versa when Bitcoin gets great support, it will make the crypto market even more attractive.

Bitcoin dominance dropping only means the markets of the other coins are rising faster than Bitcoin. More people are buying altcoins than Bitcoin itself. It doesn't mean there are less buyers of BTC, just more buyers of altcoins.

BTC Dominance statistics are useless and no indication of it's position against other Alt coins. Currently https://coinmarketcap.com/ shows BTC Dominance at 50.8%  ::)

The Total Market Cap = $139 518 645 935 and Bitcoin is currently at $70 913 330 285 with it's closest competition, Ethereum at $14 683 840 325. <Even the Market Cap statistics are crap, because it is not a true reflection of the situation>  ::)  

Bitcoin BTC is still on the top, and this is good for all other Alt coins. <If the strongest crypto currency fails, then the rest will follow.>  >:(
 

People have already covered why it's a meaningless metric, but to give you a better idea what would happen, look up stats from late January 2018.

According to this site (https://coinmarketcap.com/charts/), it went as low as around 32% in that period.

Spoiler alert: there wasn't anything special happening. The alt market was just staying strong while Bitcoin was reeling from a furious bull run.

If it drops to 40% then it should have a domino effect in the market along with the altcoins. If you notice in the last bull run, major altcoins gain a significant amount of value along with bitcoins bull run but after that when bitcoins price start to decline altcoins took a huge blow.

Although I believe that what you said is true, dominance is an excellent gauge of price forecasting. As it represents trust in Altcoins which means more people are ready to enter the market.
The greater BTC's dominance, the less trust in altcoin, and consequently the market's cap will be lower and vice versa.
Note that this is one indicator and there may be other factors influencing the price but in general it does not mean much.

There is a good result for uptrend because all coins are increasing in value.
We don't have to wait before it will dump because the moment it will start a bull run, we can always sell and take profit.
This market's trend has never change yet, there are sudden changes in the market, bad or good and therefore traders needs to learn the timing.

There's no competition between btc and altcoins.In most cases,you have to buy bitcoin,in order to buy altcoins,so they are tied together.Every time there is a new crypto bubble,the altcoin prices rise higher,compared to the bitcoin price,which means that bitcoin "loses market share" compared to all other altcoins,but that doesn't mean anything at all.It's just a price bubble.

I think if bitcoin  dominance will drop to 40% it will be bad for bitcoin itself because maybe price will go down,but in that scenario altcoins specially big alt coins will more likely gonna pump and gain price untill bitcoin can recover

I think that it is good for both, both altcoins and bitcoin. It's because last December 2017, that was the biggest dominance of bitcoin in history. It's about 60 to 70% up. But what happened to other coins? It goes up as well. This simply means that alts are just following bitcoin and if bitcoin rises up, they rise too. But if bitcoin does fall, they also fall. It's just a domino effect with cryptocurrencies.

Some altcoins have a huge supply and at the same time low trading volume which is giving us an impressive market cap that will be useless and should decrease very fast if some small part of holders sells their shitcoins. In case with BTC we have more mature market and and a good quality coin. To compete with it altcoins have to become less speculative and have at least some usage for its users.

With that, it makes BTC total dominance rate undervalued.
It should be higher than the current rate now, maybe around 80% if we exclude the high supply shitcoins now that has no volume.

But let me check if it's really true, currently sorting now the list in coinmarketcap and it shows.

http://i68.tinypic.com/20ud6rd.png


Looks like not all high supply coins has a good marketcap and therefore shitcoins might not affect the accurate of the entire marketcap.

"analyzing" market cap does NOT give you any information! and it is not even a part of Technical Analysis!

during the last bull run altcoin pumping spree, bitcoins market cap went to 40% of the total because bitcoin had 17 million coins in circulation while there were 2400 altcoins and tokens each with at least 1 billion tokens in circulation. I once calculated these ratios, it was about bitcoin having 40% of the market cap while only having about 0.001% of the total supply!

you should not exclude coins just because they have high supply, you should focus on removing the premine from them. for example if you remove the premine of the coins on top (ETH, XRP,...) then you can see their market cap comes closer to reality when it drops about 80%.

if total marketcap is rising and bitcoin dominance is dropping, its good for altcoins.but if they are dropping its the worst for market. cryptomarket will be healthy when altcoins doesnt move according to btc.

When bitcoin becomes too dominant the altcoin market falls which is bad overall as good alts like ethereum, eos, will also crash. 50% is just about right, if it gets lower then it's use as digital gold might waiver

Bitcoin is already dominant and even without looking at the figure, we will feel that there's always significant effect on altcoins when bitcoin moves.
The market data alone is not a good basis, you have to look in different factors to analyze the market pretty well.

CMC is excluding some honestly dead shitcoins. It is pretty obvious that if shitcoin have 0.5$ of daily volume then with a billion supply it still won't make its market cap.
But the problem is that MC of other altcoins is still overvalued and global crypto MC is pretty rough.

of course the bad effects are very clear now, so that all investors see prices now becoming frustrating. because they have suffered huge losses at this time. But with all this, we must be optimistic that the future of Bitcoin will be better. actually bitcoin and altcoin whose prices have started to rise a few percent this month.

40% is still a large share of the market and still shows how dominant bitcoin is.  Altcoins tend to pump a lot harder during bull runs so don't be surprised if bitcoin slowly loses marketshare during this next bullrun.  During the bear bitcoin tends to gain dominance as more people convert to btc for safe holding.

If bitcoin dominance reduce?  I think it will definitely going to favour the altcoins market.  We can see how bad it is for some of the coins that has better technology than bitcoin but they could not make any significant progress outside bitcoin and that means bitcoin problems automatically become there problems and that makes it very difficult for them to grow.  If bitcoin reduce in dominance on cryptocurrencies market other strong coins like ethereum and ripple will become competitive and that makes some of them become profitable in investing.

The fall of Bitcoin capitalization is inevitable in the future, as over time more and more new coins and tokens with much better functionality will appear. If Bitcoin capitalization drops to forty percent, then most likely nothing significant will happen. But if it continues to decline further, then after a certain time Bitcoin will lose its price dominance over other types of cryptocurrency.

If within the current range nothing will happen, but if the market will turn into billions or trillion marketcap and bitcoin has a big share of that market, it's still good for BTC investors as it still brings profit.

BTC dominance will not continue to hold it's range now, it will drop for sure, there will be more project that has a good potential that could possibly boom in the future and people might cut some of their investments in BTC for that project, but the moment the market will again be bearish, they will go back with BTC as it's more stronger than alts, well, that if the trend now will still continue in the future.

In theory both...
Since after droping price starts going down (less coin in the market) that means everything else will become even shorter in terms of having btc to exchange for any other crypto.
Same happens (vice versed) when price rises.

But probabily markets start loosing their own values (exchangers and Casinos).

Ever since Bitcoin has its dominant market cap of more than 50% to the 2nd placer and for a long time it holds still among all of the altcoins combine. I think it's good for the crypto world itself that Bitcoin is ahead to other altcoins as it's the father of cryptocurrency.

When you look at the price chart of Bitcoin and Ethereum back in January 15, 2018 Ethereum had $130+ billion market capitalization while Bitcoin had $224 billion so at this point Bitcoin only holds a 41.96% dominance from  Etherum but as of today Bitcoin has more than 500% dominance.

I really don't think that anything will be changing because it's just the ratio in proportion to the altcoins. The money would still be in the crypto market.
It's just that there would be less number of people holding BTC and more number of people holding altcoins.
But even if the dominance drops to 40% it's still a good deal because there are thousands of coins/tokens and all of them combined competes with the dominance of BTC.

There was a point when ethereum was very close to bitcoin's marketcap and it may happen again in the future.  Many experts think this flip will happen as Eth gains even more adoption.  You can't go wrong with either, and its clear that btc/eth are the two most accepted cryptos for payments.

 happens. all altcoins will have a big impact. price decline cannot be avoided. everyone thinks if crypto is bitcoin and all eyes are on bitcoin bricks. so altcoin will rely heavily on bitcoin as the most dominant crypto currency in the world. we must be able to socialize altcoins, so altcoin can dominate the market.
 

why should the bitcoin founder's centrally controlled and owned cryptocurrency index ever, ever, ever recognize altcoins that are close to the top 10 or even top 200?

it would economically not benefit them, and their whales, and their miners.

this index is a big fat first mover scam. that is highly corrupt, whats with facebook coin, whats with JP Morgan coin, whats with the 500 million coins of japanese Bank startups, its unending.

crypto might very well crash soon due to these problems.

so since the reconition runs according to a corrupt network, it wont happen. bitcoin will be upkept as nr.1 cryptocurrency. except two cases happen:

a government is being enforced with violence over all or parts of the population

or

people stop taking serious the current cryptocurrency indexes.

The creators of altcoins should create altcoins that are of high quality and should not be in the shadow of bitcoin. Altcoins should be useful in real life, altcoins should be used in real life. so they will no longer be in the shadow of bitcoin and will be recognized. What happens now are is the we have many copy/paste and modified projects in some aspects and with this we have more than 2000 Altcoins without any purpose

I also think that too high BTC dominance or too low BTC dominance, both are not good for the crypto currency. Bitcoin dominance should remain between 45% to 55% as this is ideal percentage for the market to grow.

That means if the dominance of bitcoin decreases in the market, lets say, the dominance of bitcoin is only about 40% of the total marketcap in the market. then effect of bitcoin is certainly not as big as before right? Bitcoin price movements may not affect the price of an altcoin market too much..

Bitcoin dominance has no effect on the runnings of the actual network. You have to realise that.

Bitcoin dominance is simply the market share of bitcoin relative to all the other cryptocurrencies in the market. Prices are independent of the code underlying the system. If bitcoin dominance drops, all that means is that the markets now tend to favour other cryptos relative to bitcoin.

Usually, this happens in a bull market because when people have FOMO, they tend to move their funds out of BTC and into other coins where the hype is. There is no real "beneficiary" from the drop unless the entire market is growing, though you could argue that traders can take advantage of the drop by speculating on the index rebounding.

do we not consider that the price of the decline is an ugliness, we can see if the price moves down then there will be large-scale purchases from traders. this indicates that there is a scenario of trade that is happening, so this is not a bad thing.

It might sound so easy to predict or even state something like that. In reality what might be happening as my article said is something like a pump and dump.
If most investors believe a pump is necessary they will start one and eventuall price rise where ourselves will think it's something normal happening in the network.

That's not right because Bitcoin is still the most widely traded cryptocurrency the amount of impact it does to altcoins won't change. Last year Bitcoin's dominance was less than 40% and we all saw how many billions of dollars were wiped because of Bitcoin's gradual decline. Kasabus is correct the dominance is not a good metric to determine how big can a cryptocurrency cause to other cryptocurrencies.

I do not believe shitcoins have any real influence on this change in dominance. And by shitcoins, I mean those tokens or forks that are traded only on not very reliable exchanges.

It is very difficult to create metrics and statistics about a market so confusing and with so much fake volume. But Bitcoin's dominance has always been a clear indication of how projects that are in the top 50 are behaving. And nowadays, after a long period of great falls, we are seeing a movement far superior to Bitcoin himself.

I think a sign of a Bull Market might be this dominance. Below 50% or reaching 60% would indicate a speculative high of altcoins or Bitcoin itself.

Usually when Bitcoin dominance increases this means that altcoins are very cheap and this corresponds mostly with bearish trends.

When btc dominance lowers, altcoins become more expensive (bull run), btc price increases also, but not with the same speed.

when the price of bitcoin starts to decline, maybe a panic sell will occur, it will make the price of bitcoin continue to decline. this will be very bad for those who hold bitcoin, and will be a good opportunity for those who intend to invest. however, this will not happen.

Correct because the last bull run, BTC did not increase more than x10 but altcoins did increase more than x10 , some even have a x100 increase.
Therefore, when correction happens, it's just normal that altcoins will dump harder than BTC and we can confirmed that now.

first of all bitcoin went up about 22x during the 2017 bull run.
secondly it has never been about the size of the rise but the quality of it. there are shitcoins that have risen more than 1 million percentage in less than a week but that doesn't make them any good and there have been shitcoins that have gotten pumped for about 50% but their dump has been even harder.
you see the only thing that matters is whether a rise is a pump or an actual rise. what bitcoin had was a rise due to its adoption so it doesn't matter how big it is, it will be solid even if we drop way below that level (in which case it will be considered under value) but for altcoins it was pump so it was fake and it needed to get dumped harder.

I don't think that there would be a huge difference if Bitcoin's dominance dropped to 40% in Coinmarketcap and most of the pairings of alternative Crypto Currency are Bitcoin paired so we can expect that Bitcoin is the mostly used Crypto Currency and I don't think that it will be dropping to 40% or below that range this time but who knows it might drop again, because way back in January 1, 2018, Bitcoin's dominance dropped from 36% and it is really hard to say if it is going to give a bad or good effect to Bitcoin and Altcoins. :D

Not much'll happen. I've no doubt it will happen at some point.

I find it pretty amazing that alts have delivered pretty much zero, and indeed have brutally fucked an awful lot of people, yet they're going to explode again at some point without having had to have achieved a single thing.

if this was something like trading volume, value, utilities, merchant adoption, decentralization,... and basically anything meaningful like that then you should have been worried and that kind of drop meant a serious competitor is in the market but so far altcoins have not been able to compete in anything meaningful and market cap (aka dominance) doesn't mean anything to anybody except the altcoin pumpers who intentionally inflated their coin's market cap to pretend competing.

I don't think it is a big deal BTC dominance dropping to %40. It means some alts gained value and most of the times, BTC takes that value back.

Dominance means domination  . so if that drops , the price is also expected to drop but 40% is only small so i think its not a big issue at all and besides   , that drop can still be recovered because there are always new people that will enter on the bitcoin industry  .


How can that be possible when we all know that alts and btc are moving as one ?   When it comes to pumps , alts cannot pump 100x or more compare to bitcoin because alts do only have a small base value  . maybe you hold alot alts , thats why it make an illusion that they increase alot .

If it drops, I will be very glad, because funds will flow to altcoins and this will generate huge profit for the holders of those altcoins. Nevertheless, this doesn't make the bitcoin look troubled or in any eye of the storm. I even want the dominance of the bitcoin to drop, but I doubt this will happen soon or ever since traders have more trust on bitcoin than any altcoin.

There is no funds transfer happens when BTC will drop. If BTC drop again, definitely the entire market will dumps also most particularly for Altcoins cause we know that how becoming dependent into BTC. We have notice for BTC's uptrend motion but isn't comfortable enough to think that we will going into bull run, it maybe it is just a start for market settlement.
 

After that bull run, we get the bear run and bunch of people losing interest in crypto.
In short, less the BTC dominance means shitcoin is dominating and we can again expect a start of a bear market and climate of FUD.

In technical terms bitcoin dominance in the market depends on its market cap, if dominance drops it shows more investors are inclined towards altcoins, but who cares? At the end all these altcoin investors move back towards bitcoin which is much reliable than altcoins.
On one side there are thousands of altcoins in the market, but on the other there is only one bitcoin which is most reliable and strongest crypto, and that's enough.

I think nothing special will happen, I believe BTC dominance is destined to drop.  It is normal in an ever evolving market.  At some point one can reach its peak of dominance and after that it will slowly go down and replaced by another one which is more advance in terms of technology and more user friendly. 

Reducing the total value of Bitcoin in the market to 40% will be a bad thing for Bitcoin and the whole market. I don't want this to happen because it will cause long-term major corrections and investors continue to suffer from long-term losses.

I think especially nothing will happen, since the dominance of bitcoin was 37 and nothing happened in the market, think bitcoin will always dominate the market

It's definitely a good for altcoins..People say all altcoins are tightly bound to bitcoin but it's a wrong idea. Take a look at bnb while bitcoin has remained almost stationary in the past few months,  BNB  has grown remarkably in value.. An active use case with a ready market for altcoin projects will make bitcoin loose it's dominance. 

Probably so, that is what will likely happen because liquidity will be transferred to altcoins and more people will start believing and coming in to altcoin which will certainly lead to price rise for them.

Yes the impact on altcoins won't change. Bitcoin is still the most widely adopted Cryptocurrency and is the face of Blockchain and consumer's preference is not something you can overwrite easily. Every businessman with a big enough organization or group of them can tell you how truth that statement is.

The impact won't be for Bitcoin only. It will affect the whole Crypto World one way or another.

If the dominance starts to drop, it means the price will also start to drop. Now we have seen that the price of altcoin most of the time reflects the price of bitcoin. So there is a high chance we might see that the price of the altcoins following the trend with bitcoin, thus the prices of altcoins will also start to drop. Altcoin/bitcoin are the most traded pairs in an exchange. So, the change will affect the price of altcoins.

If the level of Bitcoin capitalization falls below 40 percent, nothing much will happen. Of course,
the market at the same time completely fall in price. For this to be of great importance, Bitcoin capitalization must fall so much that it loses its price dominance over other types of cryptocurrency. In this case it would be interesting to see what will happen next and how the whole cryptocurrency will behave. I think that Bitcoin and in any case will steadily decrease in the level of capitalization and the loss of price domination will occur sometime.

This is not the case all the time, during the last bull run, the dominant rate of BTC is lower than the current one, but BTC has reached a good price.
It will only drop if there is no increase in the entire marketcap, but like last bull run, there is a significant increase and we all witnessed that.

Yes If Bitcoin dominance will drop low to 40% in the crypto market I doubt that it will effect the Bitcoin price significantly unless it looses its users confidence regarding the future of bitcoin because often its price seems to decrease when there is a huge supply to exchanges more than the demand due to investors moving alternative currencies or investment options so dominance has nothing do with its market price

And now, after we see bitcoin price make a correction in a few hours ago, the altcoin still going to the higher price but before it happens, the altcoin following to adjust the price. Altcoin will go down if bitcoin drops, no matter how much the percentage, because altcoins move, depends on the bitcoin price. But now, some altcoins is going to increase because bitcoin now trying to reach the higher price before and we could hope that in the next week, all coins can increase together ;D

I think if bitcoin dominance below 50% it's bad for all cryptomarket, if you analyze back history crypto market you may see all altcoins following Bitcoin..

Nothing special happens except that the bitcoins swings won't majorly correlate with the altcoin swings.
We even witnessed this recently when the BTC dominance was down to around 30%... Shortly after this we had a major bear market where BTC dominance wen't back up to over 50%.

What I observed however, is that, the bigger the bull run, the lower BTC dominance becomes or in other words, the higher the bitcoin price becomes, the lower it's market dominance gets.

i know that the bitcoin dominnace will be on the top of the cryptocurrency list, but if the bitcoin dominance drop to 40% it means that many people sell their bitcoin and nobody dont want to buy it, i think it will affect the price of bitcoin even the altcoin and other cryptocurrency price

It all depends on if the whole marketcap goes up or not. If we ever go into another bull run at some point and the whole market capitalization say goes to one or two trillion dollars, then it will not matter if the Bitcoin dominance will go down or become less than fifty percent, because the whole of the market will have gone up in value. Of course if the CMC remains at these low values, then of course it will be better for altcoins if Bitcoin dominance goes down, but to be honest that won't happen unless there is a bull market sentiment and after a Bitcoin parabolic bull run event, which will induce people to inflate the price of altcoins to make even more profit form BTC.

I think with past recent years it is better as long as BTC is still the prime subject of exchange. When ICO hyped, there have been so many alts that every time it goes to exchange BTC loses dominance but the effect is it increases in price. Bitcoin went from about $1k in January 2017 to about $20k in December 2017. But at the same time, BTC dominance went from 87.62% in January 2017 to 38.65% in December 2017. But it was all thanks to altscoins that it's price increase. When people start buying alts at ICO, they intend to sell it and the primary partner crypto at that time was BTC so that is why it increases.

I don't think so, drop of bitcoin dominance does not mean that bitcoin marketcap are decreasing right? Altcoin marketcaps could be bigger because of mass adoption? Bitcoin's dominance may decrease if the altcoin's electability starts to rise, but that doesn't mean the price of bitcoin will fall

For me, most altcoins are just something I can trade to earn more bitcoins, but altcoins are also stablecoins, and here we can potentially see endless supply being added, making their dominance going up without the price going down.

The more stable coins we see in the market and the bigger their supply gets, the lower the bitcoins dominance will get. So to see bitcoin dropping to 40% or even 25% will most likely happen over time, even without an altcoion bull run.
And if the stock market, one day choose to get their own token so people can trade stocks 24/7, we cut easy see bitcoins dominance below 10%

if btc dominance is dropped by 40 percent then it is bullish time for altcoins I think 41 percent is the least percentage bitcoin dominance reached

If a  decrease like that happens it probably would means that some top cryptocurrencies or the whole market have shifted a bit to altcoins or new investments have poured into the altcoin world

Although all currencies are pegged to the currency
However, the effect of the decline of the BTC dominance  will have a strong return in conjunction with the increase of volume.

BTC dominance is an useless metric, when u have people creating coins every day...

it is not the first time that bitcoin dominance will be exceeding 40% if it gets to that point. the truth be told, it is always the idea system. bitcoin has the the massive dominance and that is good news for the crypto market in entirety. consider the father of a family having dominance over his children/offsprings

it is clear that if prices continue to fall and prices become very low, then there will be market destruction and traders will experience mistrust of crypto.but things like this are very unlikely, because traders are spread all over the world and they are still trading crypto, so there will be no sudden decline in value. so let's build the economy using crypto as the foundation for all transactions that we do.

Making useless coins will not make it listed in coinmarketcap because they have a requirement.
Also, they are active in delisting useless coins so most of what we see are legit coins and if some will turn into useless if will decrease its marketcap as the value will also go down, so I still believe that https://coinmarketcap.com/ is very helpful to investors.

not all crypto follow BTC graphics, there are some stable coins that do not follow BTC charts such as BNB, ODEM, Azart, ironX, and others.

I think, the dominance of the BTC market does not have a big influence on the crypto market.