Bottom comparison of cycle is best here. It is no accident that each following bottom is higher than previous one. It is actual change in structure, in who's involved in the market. 2018 was almost all regular investors. But 2022 wasnt anywhere near as filled with big companies, with some big company players. But ETF inflows, the holdings of governments and corporate treasury that did not exist in the past cycles are here today. That puts different spin on it.
Increase in stablecoin dominance is good sign to keep an eye on but it is double-sided one. Yes, it does show capital moving to sidelines, but so does stablecoin capital sitting in wait. $60k overpriced argument doesnt take into account those differences, and that is where applying 2018 drop percentages to current market structure breaks down. Market changed completely between cycles.
Eventually that stablecoin market will enter the best coin as well, because according to my understanding, many exchanges are giving fixed returns on staking and locking the stablecoins, that's why the dominance is increasing as people are locking them for making stable return. This is going to increase because of the Clarity act. So I am sure the dominance of the stablecoin market will at least increase by 2x.
I think a time will come even the bigger tracking platforms like coingecko and coinmarketcap have to remove stablecoins from the dominance, because this way the dominance of btc would be a lot less. Even if they will not do it, we need to remove it from our charts manually, we can easily set a formula using ChatGPT and can exclude all the stablecoin dominance out of the map.
Comparing prices is an old-fashioned way and when we compare them we also have to compare the coins in circulation, the demand and fud created in that era so that way we can understand the momentum correctly.
