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Bitcoin (BTC) dominance continues to break through local highs, reaching 46.5%, while Bitcoin closed its ninth weekly red candle in a row.
Dominance is a measure of Bitcoin’s share of the global crypto market cap.
Source: TradingView
Until March 2017 Bitcoin dominance held above 95% as there were few competing digital currencies until the ICO boom. During the 2017 bull run, Bitcoin’s dominance fell from 95% to a low of 35% by January 2018.
The timing came within 30 days of the top for the cycle for Bitcoin and correlated directly to the blow-off top for Ethereum’s peak. After reaching the bottom Bitcoin’s dominance rose back to 73% by September 2019 while the price of Ethereum dropped 87% to $171.
The price of Bitcoin from January 2018 to September 2019 had fallen just 20% by comparison. Should Bitcoin’s dominance continue to rise in 2022 as it has in previous halving cycles what could this mean for the rest of the crypto market?
The price of Ethereum versus Bitcoin has recently reached a yearly low after concerns around issues on the Ethereum Beacon Chain resulted in downward price pressure on Ethereum. Further, a similar trend can be viewed when combining some of the other top altcoins to Bitcoin.
The below chart is a combined comparison for Cardano, Binance Coin, and Ethereum to Bitcoin. Should the decline continue alongside a rise in Bitcoin…
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