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Could Bitcoin (BTC) dominance hit 90% during the crisis?


Bitcoin's dominance rate (BTC) is a very interesting indicator. It is based solely on the circulating supply of Bitcoin (BTC) and the current price of the flagship's blockchain assets. Although the price does not reflect the demand for Bitcoin (BTC) or its intrinsic value, it can be treated as a sign of the beginning and end of the 'alternative season'.

Cryptocurrency trader, analyst, and educator The Moon (@TheMoonCarl) excited his Twitter audience with his extremely maximalistic prediction of the rise of Bitcoin (BTC) dominance. You are sure that this indicator may reach the limit at the end of the current depression of the market.

If this prediction is fulfilled, the market capitalization for Bitcoin (BTC) (combined price of all Bitcoins (BTC) in circulation) will represent 90% of the total capitalization of the cryptocurrency market.

First of all, 90% is a very large number. The last time the Bitcoin Dominance Rate (BTC) stayed above this level was over fifty months ago in January 2016.

Bitcoin dominance
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At the time, an orange coin was trading at around $ 400, while Ethereum (ETH) was below $ 2. It is also worth noting that in the past few months, this indicator was not volatile at all. It has been in the 60-70% zone since June 2019. So an increase to 90% would mean a breakthrough for the largest cryptocurrency.

Would this mean a winter season for altcoins?

Moon Carl is not the only expert who predicts that the Bitcoin (BTC) dominance rate will rise above 90%. Recently, Qiao Wang, angel investor and Product Director of the cryptocurrency research team Messari, announced that Bitcoin (BTC) has enough power to raise its domain rate to 90% at the end of the current market depression.

According to Mr. Wang, there will be no demand for alternative currencies during the crisis months, since "when everyone loses their job, speculation is dead."

So the rise of Bitcoin (BTC) dominance is not as good for the price of Bitcoin (BTC) as it is bad for the price of alternative currencies.

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