Why is bitcoin regaining dominance?

[Don Pedro Dinero]

We passed the 50% mark recently, and if we look at what happens today, almost all alts lose a lot and bitcoin just loses little in comparison.

Is it because when we have a bear market like now, people turn to bitcoin because it is more secure? I think the opposite happened with the bull market last december, people turned to fancy alts because they thought they could hit the next 10× or 100×.

[snipie]

Most altcoins are created for a short period for a fast gain. Look at the coinmarketcap site, you will not recognise half of the coins there = fast turn-over. However, a little bit solid altcoins like ethereum and bcash dropped hugely so I think people are escaping to the safest alternative which is bitcoin.

[okala]

Bitcoin is regaining domination because ethereum and ripple that were doing very well before are now getting dump like never before.  Many investors are flipping they holding to bitcoin.

[cryptoasr]

I think people are turning their alts into bitcoin in the hope of ETF approval and bitcoin will rise and buy back their alts in much less satoshi than now.

[terrific]

Is it because when we have a bear market like now, people turn to bitcoin because it is more secure?

I think that's the reason why alt people are turning to bitcoin and selling their alts since they see a hint of bitcoin's dominance.

I think people are turning their alts into bitcoin in the hope of ETF approval and bitcoin will rise and buy back their alts in much less satoshi than now.

Yes, news are telling that there are few SEC personnel that are pro bitcoin so that can be one of the reason why people are turning to bitcoin.

[Wind_FURY]

Most altcoins are created for a short period for a fast gain. Look at the coinmarketcap site, you will not recognise half of the coins there = fast turn-over. However, a little bit solid altcoins like ethereum and bcash dropped hugely so I think people are escaping to the safest alternative which is bitcoin.

Right! But it is not the "safest alternative", it is the only cryptocurrency to hold in bear markets, or for me, the only cryptocurrency to hold for store of value in any type of market condition. Although, I have a small "investment" in Decred. Hahaha.

[St4yInTh3D4rk]

We passed the 50% mark recently, and if we look at what happens today, almost all alts lose a lot and bitcoin just loses little in comparison.

Is it because when we have a bear market like now, people turn to bitcoin because it is more secure? I think the opposite happened with the bull market last december, people turned to fancy alts because they thought they could hit the next 10× or 100×.

There maybe two reasons for that to happening,last year the price of bitcoin was spiked very rapidly at this time so some investors maybe expecting the same thing to happen so they were converting their altcoins into bitcoins and other reason is that due to make some quick money due to SEC speculations but whatever  the prices going down.

[Phenoca]

in the hope of ETF approval

+1

[tosmartak]

Pull out from alts. Apparently we can all see the rate at which altcoins are dropping pretty fast and how bitcoin is trying to retain the support at around $6000. Altcoins have been known right from time to always be in the pump and dump lane anyway and btc still gets to retain the huge support in the long run. Usually, when dominance is increasing, it shows the possibility of some bullish attempt, but it is still too late to jump into conclusions right now until we get to see what the outcome is going to end up as. Moreover, if you want to be holding for long right now, my best bet would go for bitcoin in the short and long run.

[MChain]

Is it because when we have a bear market like now, people turn to bitcoin because it is more secure? I think the opposite happened with the bull market last december, people turned to fancy alts because they thought they could hit the next 10× or 100×.

Yep, exactly that. When things look grim people tend to switch to less risky assets. Just like when stock markets are in red investors try to move to government issued bonds that yield less but are sure to pay out

[harizen]

Is it because when we have a bear market like now, people turn to bitcoin because it is more secure?

A good point. Alts are drastically decreasing it's respective price so at least for a "safe" zone, others transfer funds at bitcoin for the moment until crypto market will regain it's dominance.

I think the opposite happened with the bull market last december, people turned to fancy alts because they thought they could hit the next 10× or 100×.

Back in that wonderful year, it's a wise move to take advantage of high bitcoin price by purchasing other altcoins. Since price movements of some alts are also having a crazy pump, it's way more preferred by others as they can good amount of bitcoin in return withing just a short period of time with the right strategy and trading execution.

[d5000]

Several reasons:

• Altcoins always tend to be much more volatile, and they exaggerate up- and downswings.
• The "dominance" value isn't calculated correctly, as it mixes apples (coins) and oranges (tokens). Tokens are a completely different asset class and intrinsically much more volatile than "coins" which are meant to be used as currencies. Tokens only appeared massively last year, leading to the "dominance" decrease, and now are "back to normal".
• Most of "tokens" are worthless crap without any use case. Now that even the most stubborn bull has recognized we are in a bear market, there is not a single reason to hold them.
• ETH losing momentum since a couple of weeks - also here, fans are slowly capitulating.

But it is not the "safest alternative", it is the only cryptocurrency to hold in bear markets, or for me, the only cryptocurrency to hold for store of value in any type of market condition. Although, I have a small "investment" in Decred. Hahaha.

Decred really seems to be pretty stable (73% down from ATH), maybe its "ticket" system is stabilizing it a bit. Other stable currencies (not tokens):
- ZenCash (-73%)
- Stellar (-77%)
- ETC (-77%)

All others, including Ethereum, lost more than 80% since their ATH.
Source: https://onchainfx.com/

[jseverson]

I think people are turning their alts into bitcoin in the hope of ETF approval and bitcoin will rise and buy back their alts in much less satoshi than now.

That's pretty dead at the moment. I'm not sure where the optimism comes from.

If people have been dumping their alts (enough for this sea of red anyway) for Bitcoin, Bitcoin price should be surging. Instead, the $6000 support was broken for the first time in I don't even know how long. From those tidbits, one can probably conclude that money is leaving the market that and every coin is doing horribly, with Bitcoin much less so than alts.

[cryptoasr]

I think people are turning their alts into bitcoin in the hope of ETF approval and bitcoin will rise and buy back their alts in much less satoshi than now.

That's pretty dead at the moment. I'm not sure where the optimism comes from.

If people have been dumping their alts (enough for this sea of red anyway) for Bitcoin, Bitcoin price should be surging. Instead, the $6000 support was broken for the first time in I don't even know how long. From those tidbits, one can probably conclude that money is leaving the market that and every coin is doing horribly, with Bitcoin much less so than alts.

Though bitcoin is losing value against dollar, in alts case, bitcon's value has increased a lot against alts.  It is proved with decreasing satoshi value of alts and also increasing BTC dominance.  That why alts are getting double hit.  They are losing satoshi value in top of decreasing bitcoin price.  Alts are sacrificing themselves.  So, I think this has nothing to do with bitcoin's dollar price.  When people will sell their dollar for bitcoin then bitcoin's dollar's price will increase, and catalyst for this is much hyped ETF approval.  People thinks enough new money will enter the market after ETF approval.

[1Referee]

If people have been dumping their alts (enough for this sea of red anyway) for Bitcoin, Bitcoin price should be surging. Instead, the $6000 support was broken for the first time in I don't even know how long.

Why should Bitcoin be surging?

People converting altcoins to Bitcoin doesn't mean they keep it in Bitcoin. Currently we can see how related altcoin conversions to Bitcoin are as people dump their Bitcoins for USD in order to exit the market. Bitcoin's USD liquidity is what altcoin dumpers are after, because their own USD liquidity is peanuts and can't handle many more dumps.

The price of Bitcoin was below $6000 around 1.5 months ago, so it's not really that long ago.

From those tidbits, one can probably conclude that money is leaving the market that and every coin is doing horribly, with Bitcoin much less so than alts.

Yes. I have pointed out a while ago that a huge load of USDT was taken out of circulation, but no one even paid any attention because they are too blind or ignorant to see what's going on. Money is indeed leaving.

[Pursuer]

it is because what you are looking at is not dominance. it is market cap. and it is simply a mathematical game that has been played by the altcoins to gain "fake dominance" over the market by having huge supplies.

here is how it works.
a $10 rise in bitcoin price at this point means its market cap going up $170 million
a $10 rise in an altcoin like ethereum means its market cap going up $1010 million
same rise in price means 6 times bigger market cap in an altcoin with a huge supply!

why? because ETH has 100+ million coins in fake circulation while bitcoin has 17 million coins in real circulation. it is multiplication of X and Y where they have increased the Y (supply) of the equation to increase the effects of a pump and that supply is not even in circulation. then you look at that altcoin's fake market cap and think it is really big and bitcoin is losing dominance whereas bitcoin has been dominant all along!

[jseverson]

-snip-

Why should Bitcoin be surging?

People converting altcoins to Bitcoin doesn't mean they keep it in Bitcoin.

The guy I replied to was saying that the reason why Bitcoin dominance is growing is because people were moving money from alts to Bitcoin in anticipation of an ETF approval and a presumed bull run. That scenario does mean they keep it in Bitcoin.

I agree with the rest of your statement.

[BitHodler]

Back in that wonderful year, it's a wise move to take advantage of high bitcoin price by purchasing other altcoins. Since price movements of some alts are also having a crazy pump, it's way more preferred by others as they can good amount of bitcoin in return withing just a short period of time with the right strategy and trading execution.

It's a gamble either way. People expected that altcoins would rally when Bitcoin's ETF would be rejected or postponed, but it didn't happen. If you bought altcoins with Bitcoin because of that, you would have lost even more.

I am not a trader or speculator myself, but there is nothing better than sitting in fiat during an overall bear market. Some times it's better to not constantly try to time the market, but distance yourself from it instead.

What have people gained by trying to time the market? Most people have only lost money or Bitcoin ratio. Sure, there are certain smart traders knowing how to benefit, but that only concerns like less than 5% of everyone here.

[frankerstein]

This is happening with the speculations about Bitcoin ETF.

[pluMmet]

Most altcoins are created for a short period for a fast gain. Look at the coinmarketcap site, you will not recognise half of the coins there = fast turn-over. However, a little bit solid altcoins like ethereum and bcash dropped hugely so I think people are escaping to the safest alternative which is bitcoin.

many have already bought assets with very large capital when bitcoin has very low prices, and the more popular bitcoin is that many believe it and already believe in bitcoin, therefore bitcoin still dominates even though prices are very low.