Bitcoin market dominance is a recurring theme in analytics. Recently this measure reached a new three-month high – what does that mean for investors and why is that?

Cryptocurrencies & Bitcoin Market Dominance

Originally, Bitcoin’s market dominance, Bitcoin’s share of the total cryptocurrency market, was 100 percent. Bitcoin was the first cryptocurrency at the time. At that time, one could not even speak of a “market” at that time, as there were no alternatives yet.

Bitcoin market dominance or market share describes the percentage of an investment in the entire market. Over the years, Bitcoin has lost market dominance time and again, due to the fact that many new projects have sprung up, including promising alternatives with strong communities. The biggest projects that have deprived Bitcoin of most market share are Litecoin, Ripple and Ethereum. When altcoins, such as the projects just mentioned, increase in value, this is mostly due to a declining Bitcoin market dominance.

Bitcoin had to reduce its market share from 85% to 37% through Ethereum between February and June last year. Ethereum scored at that time by an ICO boom, which attracted many investors and put Bitcoin in the shade in the short term. Nonetheless, Bitcoin’s value increased at the same time. Thus, a price does not necessarily move linearly with its corresponding market share.

Attention to Bitcoin

And despite promising alternatives, the competitors Bitcoin not run the lead. Especially for newcomers Bitcoin is an “entry-level coin”, which leads only later in the research to the fact that one deals only later with Altcoins. In addition, virtually every stock exchange has Bitcoin listed and offers it as a primary medium of exchange – so it is everywhere in the crypto scene in use.

The Internet search seems to confirm that Bitcoin attracts new users here. Although the search queries since January together with the price have fallen rapidly, but the search term “Bitcoin” is five times higher than the search term “crypto currencies”.

Bitcoin: a conservative election

Even for many experts, Bitcoin still seems to be a solid choice, also because of its high market capital. The current Bitcoin market capital is around $ 115 billion and seems to be stabilizing right now. In the last three months, the market dominance gained despite unstable and sometimes weak prices.

Although the total cryptocurrency market has plunged from $ 340 billion to $ 217 billion since the beginning of June, Bitcoin’s power is growing in the marketplace. This 36 percent drop was fierce for the entire market, but Bitcoin showed up once While Bitcoin defends his post, comparisons with tulip inflation are currently underway again – a comparison that seldom comes from the crypto scene itself.

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Virtual currency is in many countries not legal tender, or is not backed by the government, and accounts and value balances are not subject to consumer protections. The information does not constitute investment advice or an offer to invest.

VoiceofBitcoin.com is is not responsible for the content of external sites and feeds. Guest posts, articles or PRs are not always flagged as this!

source: https://voiceofbitcoin.com/bitcoin-market-dominance-is-an-indicator/