I’m not interested in picking sides this early. If it happens to be that we’re heading into a deeper bear phase then the price will show it and if we’re not, then that will also be obvious too.
I would rather react to what is happening in the market at the current time than getting myself intertwined into some bullish or bearish narrative. Sometimes the market rarely plays out the way we expect even though it might give us clues to work with but that doesn’t always guarantee the same outcomes in every cycle.
It's funny how people can be bullish toward something that guaranteed to lose its value as the day goes by, doesn't make a single sense to me.
In the worst scenario where Bitcoin is going down because apparently the bear market is here as OP implied, USD is still going down alongside it because money is being printed every year.
OP need to know that a chart which can track yearly money total supply exist, maybe by then he will change his mind.
Perhaps you’re right about the fact that dollar can lose value over time due to inflation but I don’t think people who hold cash do so because they expect it to outperform investments or for it to grow in value no. They hold it because it is more stable and can be useful for day to day spending.
Certainly the fixed supply of bitcoin is perhaps its greatest strength but that doesn’t make it a better asset in every situation (emphasis on “every situation”) because it’s price still depends on demand and which is why it can swing around so wildly at any time.
For someone who is looking to preserve their wealth over the long run, bitcoin is certainly best suited for them. But for someone who is looking for stability and liquidity in the short term, then cash is their best bet.
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.
I don’t see why stable coins should be removed from the dominance chart. I mean! they are still part of the crypto market too even though they serve different purposes. If the current metric isn’t giving the full picture of the crypto market, then it would make more sense to just create a separate BTC dominance chart that excludes stable coins rather than trying to change the original one.
Let me also point out the fact that a higher stable coin dominance does not always mean that fresh money is coming into crypto. It can just easily mean that a bunch of people have sold their BTC or their alt coins and have converted it to stables coins waiting for a better opportunity to buy back in. Without knowing where the increase is coming from, a rise in stable coin dominance alone can be misleading IMO and it doesn’t tell you why it happened.
