Both BTC and BTC dominance are plummeting - what does that tell you?

[slaman29]

Traders after seeing the Bitcoin market for 15 years still think a week's worth of data is less to do with speculative seesaws and more to do with the overall state of a network. What does that tell you?

That's the question I prefer to ask

[PostQuantumBTC]

Those stats include stablecoins!
Stablecoins make up 320 billion out of the 2.3 trillion total market cap, that's why the exagerated drop for Bitcoin.

For example, in the last 30 days, USDT went from 7.27% to 8.12%, there you have it, nearly one full percent of the 60.36>57.97 , 2.39% drop in Bitcoin dominance.
Throw in USDC and others, and the change becomes statistical noise.

You are right but the unstable coins really make the fall in the dominance of bitcoin but it was a little fall. If you look for the coin called hype which belong to Hyperliquid, it increased significantly from $21 to $74. You can also look for coins like near protocol, ondo, ton and many other coins, they increased significantly almost or more than 2 times.

[colinistheman]

Has anyone noticed that this has coincided with most top crypto exchange listing "real stocks" or what they refer to as TradFi. I saw this on Binance, Phemex, MEXC to name but a few. I would not be surprised if there is a lot of flow of money towards those assets as opposed to Bitcoin since it plummeting right now.

Here are a few screenshots

Having crypto exchange list real stocks comes with both advantage and disadvantage.
The downside is that capital may become more fragmented instead of flowing into Bitcoin or other crypto assets as it used to. However, the upside is also significant, as it open the door for larger capital flows from traditional investors into the market.

With exchanges integrating real stocks, I would be more concerned about altcoins than Bitcoin.

[TheUltraElite]

Prices dropped = time to buy.
Prices rose = time to sell/hold out.

Simple rules, simple execution, follow them and your bitcoin stash will continue to multiply. Make it complicated and your stash will slowly undergo attrition or remain stagnant.

Beyond that what matters is that your timing and general awareness about the market and the market trend.

[sergiorus]

Traders after seeing the Bitcoin market for 15 years still think a week's worth of data is less to do with speculative seesaws and more to do with the overall state of a network. What does that tell you?

That's the question I prefer to ask

A week of outlying data oftentimes is enough to recognise short-to-medium term trends.
Good traders do it all the time. I'm not a good trader but I'm trying my best.

[Perfectbaby]

What do you expect?
As we know what affects the eyes indirectly affects the nurse as well.
Therefore, if there is a continuous decrease in the market then all other altcoins continue to falls down too, although whenever there is a serious decline in the market most altcoins usually finds it very difficult to follow the recovery process, this is because those who where holding some percentage of it might have aggressively dumped them and holding other altcoins or bitcoin that are more reliable than the other coins they were holding.

[dansus021]

This is an anomaly in my opinion, when bitcoin goes down and BTC dominance goes down, it means the money goes somewhere else, and this didn't indicate altcoin season at all. We need more data like stablecoin dominance in my opinion if there a chart like of that. the reason dominance is plummeting alongside price isn't because retail is aggressively buying mid-caps, it's a reflection of where the money is hiding, and we dont know where the money go.

In my opinion whale are parking billions straight into Stablecoins. Because stablecoins are technically calculated as part of the non-Bitcoin market cap, a massive flight to safety in USDT or USDC will naturally force BTC Dominance down on the chart, even though your favorite altcoin portfolio is actively bleeding.

[YellowSwap]

On the monthly candles for others marketcap it's still bearish as hell, there is a chance that altcoins will fall more even while it's looking as if they have had enough of the dumps.

Bitcoin takes the lead, it's the only thing that will decide, even if altcoins are still going to start doing very well Bitcoin needs to have bottomed out.

Your most target should be Bitcoin itself, without Bitcoin making massive move I don't want to bet on it that altcoins can have a very good run on their own.

[taufik123]

This is an anomaly in my opinion, when bitcoin goes down and BTC dominance goes down, it means the money goes somewhere else, and this didn't indicate altcoin season at all. We need more data like stablecoin dominance in my opinion if there a chart like of that. the reason dominance is plummeting alongside price isn't because retail is aggressively buying mid-caps, it's a reflection of where the money is hiding, and we dont know where the money go.
-snip-

There are many whales and institutions that sell their holdings in BTC and put them on the stock market, so BTC's dominance is also declining.
It's just a dominance turnover cycle that will eventually have an impact on dominance, but just wait for BTC to recover and some FUD to get out of BTC, then dominance will also rise and price starts to recover.

Bitcoin is still entering the beginning of the cycle after starting a new cycle, so it is only natural that the price will drop and some retail confidence will also decline.
What needs to be prepared now is reserve money for buybacks at a cheaper price, so that we can get more BTC at a low price and hold it for the long term.

[slaman29]

Traders after seeing the Bitcoin market for 15 years still think a week's worth of data is less to do with speculative seesaws and more to do with the overall state of a network. What does that tell you?

That's the question I prefer to ask

A week of outlying data oftentimes is enough to recognise short-to-medium term trends.
Good traders do it all the time. I'm not a good trader but I'm trying my best.

In trading, for sure, but nothing to do with network state, this is my belief. In many multiple bears of the past, network strength actually increased.

Here I am thinking of for example number of nodes and number of new wallets and nonexchange transactions or even LN (which is mainly not for trading).

[M47AK16]

Bitcoin dominance has been below 60% for most of this year. This looks more like its retracing to normal levels. Of course, people will have different opinions on what the data means. As far as an altseason, I don’t see it happening in general terms, where the majority of altcoins are going up.

There are a select few altcoins that have outperformed every other cryptocurrency. This doesn’t take away the fact that Bitcoin is fundamentally stronger as an investment. The coins that are performing well are interesting for price speculation, but I would take those profits and allocate mostly into Bitcoin.

Even the word data itself, literally have plenty of meanings. The market is clearly still on bearish, so no one would have thought that an altcoin season is brewing. It is surprising if there are altcoins that actually perform well on the current market where not even Bitcoin but the major altcoins like Ethereum, Aave, and EOS are falling too.

If only about fundamentals, some altcoin do has that as well. Maybe say that market condition like a bear does not negate that fact. It is already engrave in the coin though, while the other is not permanent. Bitcoin can still be the primary choice however, if one lacks in budget for diversification and this is still a good time for investing.

[GreatArkansas]

Strange that Bitcoin dominance is dumping too while Bitcoin is dumping. Because before, I tend to see that Bitcoin dominance will continue to pump even if Bitcoin is dumping.
So this means, altcoins are not experiencing any bloody market compared to Bitcoin or volume in Bitcoin is going to altcoins?

[sergiorus]

Strange that Bitcoin dominance is dumping too while Bitcoin is dumping. Because before, I tend to see that Bitcoin dominance will continue to pump even if Bitcoin is dumping.
So this means, altcoins are not experiencing any bloody market compared to Bitcoin or volume in Bitcoin is going to altcoins?

It was a weird temporary thing, turned out alts weren't showing strenght but rather lagging.
Then they started nuking harder than BTC as per usual and Bitcoin's dominanace has been bouncing back for 3 days straight now:

[Alcadios]

Not really. A drop in BTC dominance doesn't automatically mean alts are stronger. It could simply mean Bitcoin fell harder than the rest of the market, or that money moved into large-cap alts and stablecoins. If alts are holding up better than BTC, they might bounce harder on the recovery, but dominance alone isn't enough to confirm that.

Again, I'm not an expert.

[EarnOnVictor]

Turns out overall state of altcoins is currently stronger than that of Bitcoin (and as a result, we could expect a stronger bounce from the alts during the recovery)?
Or are there other explanations?

TBH, this chart of Bitcoin is scary to behold, but in the end, it is what it is.

Bitcoin fell sharply recently, and so are altcoins. However, the plain truth is that there's no magic anywhere, as they are observing their periodic cycle. It has always been a tradition. So no one should expect an end yet. I guess the end is between now and next year. That's when anyone should be seriously thinking of a rebound.

[bitgolden]

Even the word data itself, literally have plenty of meanings. The market is clearly still on bearish, so no one would have thought that an altcoin season is brewing. It is surprising if there are altcoins that actually perform well on the current market where not even Bitcoin but the major altcoins like Ethereum, Aave, and EOS are falling too.

If only about fundamentals, some altcoin do has that as well. Maybe say that market condition like a bear does not negate that fact. It is already engrave in the coin though, while the other is not permanent. Bitcoin can still be the primary choice however, if one lacks in budget for diversification and this is still a good time for investing.

There are few outliers, and they usually do good for a while and then do badly like resto f them. During a bear market, do not be fooled if you see something green, it is hyped and pumped for a while and becomes green, but then it crashes just like others eventually.

If the market is down, everything is down, daily movements do not matter. One thing being up on a Tuesday doesn't mean it will be up on Friday neither, it could go down for five days in a row after that so you have to be careful.

[dragonvslinux]

Those stats include stablecoins!
Stablecoins make up 320 billion out of the 2.3 trillion total market cap, that's why the exagerated drop for Bitcoin.

For example, in the last 30 days, USDT went from 7.27% to 8.12%, there you have it, nearly one full percent of the 60.36>57.97 , 2.39% drop in Bitcoin dominance.
Throw in USDC and others, and the change becomes statistical noise.

You are right but the unstable coins really make the fall in the dominance of bitcoin but it was a little fall. If you look for the coin called hype which belong to Hyperliquid, it increased significantly from $21 to $74. You can also look for coins like near protocol, ondo, ton and many other coins, they increased significantly almost or more than 2 times.

This is completely unrelated when discussing Bitcoin dominance. Stompix is right, it's the growth of the stable coin sector. You can see it for yourself on TV with STABLE.C and specifically STABLE.C.D. The confusion is that usually BTC dominance rises when price is capitulating, but this doesn't happen anymore because stable coins have become 15% of the market. All this means is that investors aren't leaving the cryptocurrency space altogether, or abandoning Bitcoin for good, instead they are holding stable coins in order to wait for the right moment to return (at least, this is the usual reason for holding them). As for Hype specially, it's change in dominance is negligible to the effects of BTC.D or STABLE.C.D because it's only ~0.67% of the market, that's how much it could effect Bitcoin's dominance if not obvious

For context in the past 12 months stablecoins have risen from 7.5% to 15%, that's why it's effecting Bitcoin dominance, little else. You can see this by calculating Bitcoin dominance in the market excluding stablecoins, it continues to rise...

[Faisal2202]

This is a very good post, but that chart is not need because the altcoins also fall recently but not significantly. Bitcoin marketcap has fallen to 57.83% from 60% that it was recently. It also fall from 62% which it was this year.

If the fall will continue, it is possible that the altcoins will follow and it will be massive for the altcoins, but I also noticed that the altcoins did not really fall this time.

The bull run always start with bitcoin, it is followed by the altcoins. We have seen signs already the next season may have altseason.

Altcoins did not dip like BTC dumped because alts were already touching their bottom, but alts which still had some room for dumps they also hit their bottoms like ETH and some others. But I did not see any sign of alts to pump. There is no reason at all at this point, the dropping dominance means money is flowing out of BTC.

Where it is going if it is not going into alts should be the main question here, because right now gold, silver, oil, and these IPOs were the hot investment opportunities also the AI sector has been on top of everything right now so the money was flowing into them that's why we are seeing their outflow but it is temporary.

Speaking of alts they won't pump high in the bear market, we want altseason it will happen near to the halving or after halving once btc will hit a new all time high.

[logfiles]

Strange that Bitcoin dominance is dumping too while Bitcoin is dumping. Because before, I tend to see that Bitcoin dominance will continue to pump even if Bitcoin is dumping.
So this means, altcoins are not experiencing any bloody market compared to Bitcoin or volume in Bitcoin is going to altcoins?

The Biggest culprit messing this up is the stablecoins. Moving funds to stablecoins and not other altcoins can affect BTC dominance just as much which is why I no longer take it seriously vs back in the day when BTC was the major base currency in most trading pairs in most exchanges.

I also think this TradFi hype also has some effect because those tokenized stocks are technically tokens.

[JeffBrad12]

Yep, there are several tokenised stock issuers, and the biggest one, I believe, is xStocks.
Their products are not only on centralised exchanges, but also on probably a dozen of blockchains, tradable on the DEXes, and usable in other DeFi apps.

I've noticed this in several exchanges, there is even something called xStock alliance that helps tokenize equities backed by strong entities to help purchase of equity, around end of may TSLAx has raised its market cap from 90 million to 170 million because backer is strong.
If the data in btc dominance chart include these tokenized equities as altcoin, it's no wonder the dominance is going down and the price decline of btc is rubbing salt in the wound.