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Bitcoin Dominance (BTC.D) Rises While Crypto Markets Drop Sharply

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rtonline
@rtonline
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Bitcoin (BTC), which is in the leading position according to the market cap, has been falling sharply for 2 days and many altcoins are following it. The drop in Bitcoin is affecting altcoins a lot and altcoins are falling harder. And Bitcoin's dominance in the crypto market is increasing.

Almost all cryptocurrencies in the crypto market are in the red zone. Bitcoin, which is in the 1st rank according to the market cap, has lost 8.98% value today and lost 17.72% value on a weekly basis. The majority of altcoins have lost much more than these rates.

There has always been a drastic correction in the crypto markets when Bitcoin Dominance (BTC.D) drops below 40%. I think Bitcoin Dominance (BTC.D) may decline in the future, but the markets are not ready for that yet. That's why extreme fluctuations in Bitcoin affect altcoins much more. Bitcoin Dominance declined to 39.17% on January 16, rose rapidly in the following days and is now at 42%.

Extreme fluctuations and declines in crypto markets may continue until Bitcoin Dominance exceeds 44%. When it falls below 40%, there may be more drastic decreases for altcoins. Bitcoin dominance may drop to 30% in the future because many altcoins in the crypto market are much stronger than before. But for now, crypto markets are not ready for this, so when Bitcoin Dominance drops below 40%, the markets react negatively.

On the other hand, these decreases may also create investment opportunities. In the following days, when Bitcoin Domination rises by 45%, altcoins may start a faster rise while Bitcoin rises. When the crypto markets recover and start a new rise, I think that many cryptocurrencies with a solid infrastructure, especially Ethereum (ETH), Binance Coin (BNB), Solana (SOL), HIVE, will start a faster rise. For this reason, it is necessary to closely follow altcoins as well as Bitcoin. I think the crypto markets will recover and regain what they lost in the coming weeks. Finally, I would like to point out that I think Bitcoin Dominance (BTC.D) will decrease as Bitcoin rises.

Posted Using LeoFinance Beta