Bitcoin now represents almost 70 percent of the entire market capitalization. Its dominance index currently sits at 69.6%, which is the highest it has been since way back in March 2017. Naturally, altcoins have been suffering in response, as they keep getting crushed, especially when trading against Bitcoin,
Bitcoin Is King
The cryptocurrency market has gone through a lot of different cycles in its relatively brief period of existence. At some moments, it was even well-balanced. For instance, back in January 2018, Bitcoin represented only 33% of the total share, with the rest distributed among a variety of altcoins.
That’s far from being the case right now, as BTC dominance touched 70% today for the first time in 26 months. The latest surge in Bitcoin’s price left altcoins hanging in the dry once again, as it managed to claim another 3% of the total market share. With a current market dominance of around 69.6%, Bitcoin has established itself as the prevalent and definitively predominant cryptocurrency.
At the time of this writing, Bitcoin is trading at around $11,819. As Cryptopotato reported, the cryptocurrency has been trading in this range for the past four days, testing the resistance area around $12,000. However, it’s also forming a triangle on the 4-hour chart which is likely to get breached, hence ending the short-term consolidation period. Given that the weekend is coming, this could be another sign that there is a sharp move ahead.
Altcoins Continue To Bleed
While Bitcoin managed to gain upwards of $1200 in the past 7 days, altcoins have been suffering substantially.
Looking at the daily charts, we can see that all the major top 10 cryptocurrencies besides Bitcoin are actually in the red. Against BTC, Ethereum, XRP, Bitcoin Cash, Litecoin, and even Binance Coin are all down 5.6%, 3%, 4.65%, 3.77%, and 1.3% respectively.
But the struggles don’t end there. The situation is pretty much the same when looking at the way altcoins perform against the USD. While most of them continue to be up year-to-date, the past couple of months have been more than tough for them. Again, all the top 10 altcoins are down against the USD as well on the daily chart.
Let’s have a look at Ethereum, for example. The cryptocurrency is down 5.6% on the day, 14.3% for the week and more than 68.3% for the last 12 months when trading against Bitcoin.
Against the USD, ETH is up around 60% since the beginning of the year but it has also been struggling heavily in the past month, losing about 30% of its value.
Unfortunately for alt-holders, it appears that altcoins remain unable to stage a comeback, regardless of how Bitcoin performs. As Cryptopotato reported earlier in July, even when Bitcoin tanked in value, its dominance increased further, showing the investors’ confidence in the asset and their current disbelief in other cryptocurrencies.
At times like this, it’s recommended to consider important altcoins trading tips in order to optimize your strategy, to mitigate your losses and to potentially maximize your profits.
The post Bitcoin Dominance Touching 70%, Altcoins Finding New Lows appeared first on CryptoPotato.