The year 2017 has been very interesting for all cryptocurrencies. A lot of coins and tokens set new all-time highs. Looking at the bigger picture, the overall intent in cryptocurrency has been on the rise as well. However, there is one statistic a lot of people won’t make sense of. Even though Bitcoin is still the world’s largest cryptocurrency, the Bitcoin Dominance Index is waning. In fact, it hit an all-time high in recent days, which is pretty interesting.
The Bitcoin Dominance Index has always been an interesting metric. Until about 15 months ago, Bitcoin would dominate all of cryptocurrency. It still causes most altcoins and tokens to rise or drop in value as well. Its overall valuation has risen sharply in 2017. For all of those gains, however, Bitcoin is also losing ground. Although its market cap is still pretty impressive, it’s not always the talk of the town. Altcoins and other tokens are mounting a very strong comeback as we speak.
Bitcoin Dominance Index Continues to Shrink
To put this into perspective, the Bitcoin Dominance Index is lower than it has ever been. That’s a good thing, as it shows people are diversifying their investments. Never put all of your eggs in one basket, as it will eventually cause financial harm. The people who bought Bitcoin at the top will not be too pleased with the way things are going right now either. Bitcoin is losing its dominance in more ways than one, that much is rather evident.
Interesting to note that BTC dominance just hit an all-time low at 37.6%. Is this a trend, or will it rebound? Without a doubt, many other coins have moved up aggressively in the past 2 weeks, while BTC has stagnated. pic.twitter.com/KKoLbRR1kT
— William Mougayar (@wmougayar) January 1, 2018
In fact, one could argue Bitcoin’s bull run may be over, for now. It is not uncommon to enter a bearish market after such spectacular gains last year. Every day, we see the Bitcoin price struggling for momentum in what appears to be a losing battle. This doesn’t mean we will see the Bitcoin price crash all of a sudden either, though. Instead, it will keep bouncing between $12,000 and $15,00 for quite some time. Or that is how it looks right now. Cryptocurrency remains a very unpredictable market, for all intents and purposes.
No one knows for sure what the year 2018 will bring. People who conduct their research know Bitcoin is not in a good place right now. Moreover, we see a lot of pump-and-dump cycles propel altcoins without working technology or products into the top 10 all of a sudden. Rest assured the overall market cap list will look very different in a year from today. The Bitcoin Dominance Index may be a lot lower by then as well. An interesting few months are ahead of us, that much is rather evident.
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