Why is Bitcoin market dominance rising fast?

[Leyss]

The last two years, the altcoin market has actually been in a bear market. Altcoins almost did not grow even when in the second quarter of this year bitcoin increased in price by almost four times. Under these conditions, investors are more likely to invest in bitcoin rather than in altcoins. Including therefore, the capitalization of bitcoin is increasing. I think that if by the end of the year bitcoin does not meet the expectations of investors, its level of capitalization will fall. In addition, this process will largely depend on the behavior of altcoins in the cryptocurrency market.

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[darkangel11]

It's going to keep rising because altcoins are still getting hit harder than Bitcoin and people are not dumb, they can see it happen and they can count. The more altcoins get hit the more people want to jump of this train. I know this is counterproductive and when something gets hit really hard and loses 80% of its value you should jump in because the probability of a bounce back gets higher and higher. The majority is dumb and predictable and they will move to fiat or to Bitcoin because it remains more stable than altcoins but save investments don't pay out.

[amyshek1979]

That's interesting question 

[Abiky]

It looks like some sort of an altcoin fightback is going on... The dominance has declined from 71.2% that we had almost one month back, to around 66.2%. That is a 5% decline in just one month. Back in September, it looked as if the altcoins (including Ethereum and Litecoin) were inching towards a complete meltdown... but now the situation got been completely reversed. Established coins such as Ethereum have regained crucial support levels, although they are still showing a lot of weakness.

I believe that the market is being manipulated by whales than anything else. They're "playing" with Bitcoin, as well as, other altcoins on the market. At times, they cash out a portion of their altcoins into Bitcoin and vice versa. That's why we see a fluctuation in Bitcoin's market dominance across the crypto market. But at least, Bitcoin has maintained itself as the leader of crypto for quite some time. As more altcoins are created, you'll see Bitcoin's market dominance diminished by a small margin. The next bull run, will greatly determine how farther Bitcoin's market dominance will increase.

Nonetheless, Bitcoin's market dominance tells us nothing other than how prominent the cryptocurrency is in terms of price relative to other coins on the market. What matters is how useful the pioneer cryptocurrency is within the mainstream world. No matter what its price will be in the future, if it's useful enough for the average person then I believe that's sufficient. Things will become interesting with Bitcoin once the Lightning Network gains full speed ahead in mainstream adoption. There's a high probability that Bitcoin's price (and market dominance) will become higher over time. Which is why, early adopters of the cryptocurrency (like you and me) will greatly benefit from this in the future. Just my opinion