Why is bitcoin regaining dominance?

[ablelester]

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.

Yeah I'm on that boat too. No one likes to hold altcoins for long, it's like sitting on a bomb. They love 'em and leave 'em for short term profits and then move back to bitcoin to protect those profits. And since the altcoin markets are shit right now, everyone's piling on bitcoin. Rightfully so.

After that big bubble, bitcoin has started to look stable and promising. People are coming into it cautiously because they know an opportunity when they see it. Bitcoin will be around for a lot longer because it has those security features.

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[tbterryboy]

this is because the prices of altcoin, especially ethereum, go down too far. it makes bitcoin dominance back to 50%, more precisely the domination of bitcoin has reached 53%.

Well the market in general is following a downward trend and people may be thinking that btc would be the safest option for now. Considering how much the alts dropped compared to bitcoin.

Bitcoin’s investment is safer than others due to its strong base we feel easy and tension free as we know well about the Bitcoin which also shows low market trend besides high market trend of value so we should not make decision on this. Results are very clear and you will find it easy to invest in the Bitcoin on current cheap price that will be in maximum benefit in bull market.

[ice18]

And the volume is quite high compared to past few days In my opinion I can see a huge amount of money slowly entering into bitcoin markets everyday from selling on their altcoin or from new investors hoping for another great opportunity this year which is the great bull run that will going to happen soon.

[jhongzjhong]

And the volume is quite high compared to past few days In my opinion I can see a huge amount of money slowly entering into bitcoin markets everyday from selling on their altcoin or from new investors hoping for another great opportunity this year which is the great bull run that will going to happen soon.

Probably bull run will be coming soon since BER months were coming and expected that cryptocurrency will pump at this time.
Its normal that market price movement swinging and recovered for at least 2 or 3 months from the dip, so, the best thing to do for a while don't look into your wallet, instead be inspired on investing crypto while the market is cheap to buy coins.

[d5000]

By the way, I think we could get a better measure for a coin's "popularity" or "value" than "market cap" if we try to measure its transaction activity. Probably Bitcoin's "dominance" would be much higher. Coinfairvalue tries something like that, but has some pretty strange valuations ...

Do you mean trading volume? It doesn’t seem to be a bad idea. That’s usually done with stocks.

Sorry, just saw your answer.

Trading volume has advantages and disadvantages. The advantage is that it provides a measure for "activity" on markets, and as you say, it's used in other asset classes.

But there are some important drawbacks. The first one is - how to really measure it reliably? Yes, one could compile a list of markets like Coinmarketcap does. But there are several problems with this approach:

1) You'll never be able to catch the "total" volume, as there will always exchanges you don't have on the radar,
2) OTC trading (Localbitcoins ...) and on-chain markets (BarterDEX  ...) are usually ignored
3) Fake volume is difficult to detect.

Because of these reasons, trading volume can be only one indicator of a really well-designed "crypto ranking". I know that there are more "holistic" approaches like CoinGecko, but they often include indicators that are very difficult to measure, like "development activity".

Maybe a relative simple index based on the triad "transaction volume in USD + market cap + trading volume" could give a relatively good impression of the importance of a coin. I guess Bitcoin dominance in this index would be much higher than at Coinmarketcap.

[Tapyaks72]

And the volume is quite high compared to past few days In my opinion I can see a huge amount of money slowly entering into bitcoin markets everyday from selling on their altcoin or from new investors hoping for another great opportunity this year which is the great bull run that will going to happen soon.

Probably bull run will be coming soon since BER months were coming and expected that cryptocurrency will pump at this time.
Its normal that market price movement swinging and recovered for at least 2 or 3 months from the dip, so, the best thing to do for a while don't look into your wallet, instead be inspired on investing crypto while the market is cheap to buy coins.

As what's speculated there are lots of investment flood into bitcoin, because of what  had happened last  there was a bull that many wouldn't  predicted but as off now we are heading to ber month for  sure as expected money will flood to buy Bitcoin, t

[Findingnemo]

Literally because the prices of altcoins were falling too much and more over the ethereum is under $300 and all the other cryptos who reached new heights in 2017 are falling because the prices of bitcoin were falling.

But bitcoin dominance it has anything influential in the crypto market?

[chulos]

A good graph for comparing the share of bitcoin and altcoins trading in the cryptos market. When one goes up, the other goes back and the same goes on the other way. The fact that bitcoin's market share is more than 50% is because bitcoin was and is the first crypto coin in the world. It has the highest value against other coins. If Bitcoin's market dominance helped, it's definitely a good report for all the crypto enthusiasts. However, Bitcoin's price does not grow fast even after several weeks of new, positive internet-based messages. In my opinion, it is because people mostly decide for one crypto and see the future in it. They believe more in bitcoin than everything around him.

[ablelester]

By the way, I think we could get a better measure for a coin's "popularity" or "value" than "market cap" if we try to measure its transaction activity. Probably Bitcoin's "dominance" would be much higher. Coinfairvalue tries something like that, but has some pretty strange valuations ...

Do you mean trading volume? It doesn’t seem to be a bad idea. That’s usually done with stocks.

Sorry, just saw your answer.

Trading volume has advantages and disadvantages. The advantage is that it provides a measure for "activity" on markets, and as you say, it's used in other asset classes.

But there are some important drawbacks. The first one is - how to really measure it reliably? Yes, one could compile a list of markets like Coinmarketcap does. But there are several problems with this approach:

1) You'll never be able to catch the "total" volume, as there will always exchanges you don't have on the radar,
2) OTC trading (Localbitcoins ...) and on-chain markets (BarterDEX  ...) are usually ignored
3) Fake volume is difficult to detect.

Because of these reasons, trading volume can be only one indicator of a really well-designed "crypto ranking". I know that there are more "holistic" approaches like CoinGecko, but they often include indicators that are very difficult to measure, like "development activity".

Maybe a relative simple index based on the triad "transaction volume in USD + market cap + trading volume" could give a relatively good impression of the importance of a coin. I guess Bitcoin dominance in this index would be much higher than at Coinmarketcap.

Yeah the best measurement we could hope to get would come from a combination of all three I think. The volumes are most often faked, as most people know, just to draw in more business. The transaction & trading volumes would hopefully be somewhat relative but it's hard to know for sure.

We can never really know how much money is going through P2P networks like localbitcoins, or even just real P2P. Governments could even be paying for each other's dirty work and we wouldn't ever know. Those transactions can have a major effect but would almost always go unnoticed.

[South Park]

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×.

It is not a complex process alts move faster than bitcoin, if both bitcoin and alts go up the growth of alts is faster than the growth of bitcoin, but when the market goes down and bitcoin goes down as well as alts, then alts go down faster than bitcoin as well, and when you add that recently many alts were nothing but trash then it is easy to explain what we are seeing.

[Wind_FURY]

But would there be no effect on Bitcoin's re-growing dominance if there was enough altcoin "straight to fiat" liquidity? Because most of the altcoins do not have fiat markets, only Bitcoin markets.

I guess the "dominance-boosting" effect would be even stronger - altcoiners (or better: "shitcoiners", as not all altcoins are shit) would directly cash out to fiat and the altcoin price would go even faster near zero, without touching Bitcoin (Bitcoin also can be driven down by altcoin sellers cashing out via Bitcoin).

How many more banks use Ripple?

Don't know. On their website they list four "testimonials", some of bigger banks like Santander (the German bank I mentioned isn't among them).

But do those banks that left their "testimonials" on the site use XRP everyday in their banking organization? I believe there's not one bank that uses XRP or see that they need to.

[nidacoinlove]

this is because the prices of altcoin, especially ethereum, go down too far. it makes bitcoin dominance back to 50%, more precisely the domination of bitcoin has reached 53%.

Well the market in general is following a downward trend and people may be thinking that btc would be the safest option for now. Considering how much the alts dropped compared to bitcoin.

Bitcoin’s investment is safer than others due to its strong base we feel easy and tension free as we know well about the Bitcoin which also shows low market trend besides high market trend of value so we should not make decision on this. Results are very clear and you will find it easy to invest in the Bitcoin on current cheap price that will be in maximum benefit in bull market.

It's not like Bitcoin investment is totally tension free but yeah it is safer than the alts and we know that someday it will regain and will give us a superb profit. Looking at today's price of bitcoin is too cheap as compare to the price in the early 2018. This is a solid opportunity for those having some extra cash in their account as we know that it's price can go up anytime in the next few months. 

[GoodLuck2]

Public trust is very large with Bitcoin with profits that are considered very cheap now and where many people speculate that the number of altcoins appears everywhere fear of their future will be forgotten because its existence is so lacking that investors who enter will be less likely, Bitcoin is king Coins, the first available in the cryptocurrency world, are no wonder people know him and want it after the hype happened late last year, so some people are waiting for the value of Bitcoin to the lowest point and buying more, the development of Bitcoin is undoubted for the future.

I strongly suspect that dominance is inversely related to the BTC price, at least when looking at these large price movements in the short-term. So when BTC returns to $7k, I'd expect dominance to drop again. But it would be good/interesting if people are losing faith completely in the particularly worthless alts like XRP.

I don't think people will understand and it will keep getting worse with each new altcoin comes into the market.
The market will keep on dividing as the fools believe every 'X' coin/token will be the bitcoin of 2020. 

It is interesting that many people get stuck in that mind, but it's up to each of them, but that won't apply to altcoin to Bitcoin by 2020, and it must be realized that altcoin often comes and is useless by increasing in the crypto market, there isn't enough the power to center on one alt, it is very difficult for people to see altcoins as uncertainty.

Bitcoin as a base currency will maintain its dominancy over other crypto coins and this is due to its high popularity and well responsive actions acting as public friendly currency. Besides the Bitcoin all the other coins are also struggling to obtain a position in order to compete with the Bitcoin but that is not possible and will take too long even the low value of Bitcoin will be impossible to achieve in the next five years.

[theymos]

Dominance is still high even though BTC has rebounded, which is not what I'd expected. I guess people really did lose some faith in altcoins. Looking at the chart, it seems that ETH's loss in marketcap was one of the major factors, which I find especially surprising, since although ETH has major technical flaws, it is one of the few that I consider to not be total garbage. XRP also lost marketcap, which makes sense.

[peter0425]

Dominance is still high even though BTC has rebounded, which is not what I'd expected. I guess people really did lose some faith in altcoins. Looking at the chart, it seems that ETH's loss in marketcap was one of the major factors, which I find especially surprising, since although ETH has major technical flaws, it is one of the few that I consider to not be total garbage. XRP also lost marketcap, which makes sense.

With so many scams ICO and shitcoins after shitcoins entering the picture, its about time that investors should stay away from altcoins for now and shift their money in bitcoin market. Its really surprising who much ETH have lost so far, I guess one factor is that investors/speculators even bounty hunters immediately dumps ETH to cash out and either move money to bitcoin or to another altcoins.

[magneto]

Dominance is still high even though BTC has rebounded, which is not what I'd expected. I guess people really did lose some faith in altcoins. Looking at the chart, it seems that ETH's loss in marketcap was one of the major factors, which I find especially surprising, since although ETH has major technical flaws, it is one of the few that I consider to not be total garbage. XRP also lost marketcap, which makes sense.

I'd still agree with your original hypothesis that bitcoin dominance is inversely related to bitcoin price. This rally currently is probably too small to say that it's going to be the case forever.

But I definitely see drop off in altcoin and ICO interest overall - there is no buzz within the market because it has just become so saturated and people are realising that most are completely garbage. Combined with the bearish sentiment in the market, we don't see bitcoin prices falling behind within this stretch of time.

I still think this will change once a bull market starts and bullish sentiment is injected, which is why I think this is a temporary thing. People will be looking for quick short term profits once again once a long lasting bull market starts, and continue to FOMO buy alts since I don't think the alt craze is quite over yet instead of holding bitcoin, which is the sensible thing to do in the long run.

[Mastsetad]

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.

The ETH will not get decided until well entered 2019, so there is still some hope in the mind of speculators adn noobs that it will get passed. I mean don't get me wrong, CBOE and SEC have a good relationship, but it actually passing is anotehr different story.

If I had to bet, I would bet that the ETF will not pass anytime soon, it will take years. The good news is, we don't even need an ETF or anything like that to go to the so called moon, it just speeds up the process.

I would like to think people have given up on altcoins, but I think the altcoin bubble will grow to trillions before it crashes and then BTC goes to a couple $million per coin.

That may also be a reason, but I think that people do investment in altcoin for time being and when they realize and feel about the bullish trend of bitcoin they try to sell altcoin and buy bitcoin again. They still too much sure about bitcoin profit. They still believe that bitcoin can give them a very good profit.

[exstasie]

While many bitcoiners can be seen celebrating the ongoing altcoin massacre, it's not a good sign of things to come. Altcoin hype is inevitable during bull cycles; it's a function of greed. What's the converse of that?

That's what a lot of Bitcoin maximalists don't understand: altcoin fundamentals really don't matter. Exuberant investors want to park their money somewhere, and that's all that matters. You can either ride the waves, or you can bitch about it from the sidelines like Tone Vays.

But anyway, an altcoin winter signifies a "risk off" mentality in the markets. The broader market psychology around risk cycles is one of the few valuable things Tom Lee has brought to the conversation (via his emphasis on Bitcoin's correlation to emerging markets). There's definitely something to it.