For the first time in almost 3 years, the Bitcoin dominance (BTC.D) dropped below 50%. Bitcoin dominance simply means, how dominant BTC is, in comparison with the overall crypto market.
For example: If the market cap of BTC would be $1,000,000 and the market cap of all other cryptocurrency combined would be $3,000,000 – that would mean the BTC.D is 25%. This is because 25% of the cryptomarket is being represented by BTC.
However, the BTC.D has never been as low as 25%. The lowest BTC.D we have seen so far, is as low as 35,41%. This was on the 13th of January 2018. There are rumors of the BTC.D dropping even lower than this during the upcoming altseason, but only time will tell.
The term altseason is one that many crypto enthusiasts have probably already heard of. There is however, not really a way to measure wether we’re being in an altseason or not. The unofficial definition of altseason, is altcoins (all cryptocurrencies except BTC) representing a bigger % of the crypto market cap than BTC on its own.
During altseason a lot of cryptocurrency are almost literally “skyrocketing”. During the last altseason, which roughly occurred from Q4 2017 till Q2 2018, there was a coin which gained a mind-blowing 1,581,942% ! When this coin went live, it started at a price of $0,000019 and peaked at a price of $0,300588. To put this into perspective: in the most ideal scenario, this would mean, that if you’d have invested $1,000 right at the start, your investment would have peaked at a value of $15,819,420. Jaw dropping, right?
It sounds unreal, but during an altseason it is not out of the ordinary for a coin to do a 100x. We do however want to emphasize the fact that however much gains a coin can go through, it can also make a freefall back to its starting price, or even lower. Consider your investments wisely.
Getting back to BTC.D
As mentioned before, the BTC.D has been dropping tremendously during the last couple of weeks. It is expected to continue dropping further and further. Nobody knows exactly to what % the BTC.D will drop though. Some people are saying that altseason has already started, however it seems more likely that we are currently in the run-up towards it.
The reason for this, is that the value of Ethereum (ETH) against BTC has been noticeably going up (ETH/BTC). Actually ETH has even been making new All Time High’s (ATH) for the last couple of days.
The picture below gives you a better idea of what the “path to altseason” is supposed to look like.
The upcoming months could be very interesting for all crypto enthusiasts. A lot of new crypto projects have launched and more and more will get into this massively developing market.
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