Bitcoin’s dominance remains flat – The Cryptonomist

From the first week of June until today, Bitcoins dominate plunged seamlessly to record lows.

What is dominance and what is its relationship with Bitcoin

Dominance is measured in percentages and is determined by the ratio between asset capitalization and total market value.

It can also represent how attractive a particular security, currency, index and whatever else is to investors.

In the case of cryptocurrencies, dominance determines the interest in a particular coin and is calculated by comparing its market value to that of all other existing altcoins.

The University of Cambridge defines it as a datum that determines the appeal of something or someone, and in the specific case, the currency with the highest capitalization is of course Bitcoin, although at this time it is Ethereum that actually captures all the attention of investors in view of the big changes towards which it is heading at a rapid pace and which will see the light of day during this month.

Bitcoin’s dominance is the reference figure in the world of digital currencies and is recognized by the acronym BTC.D.

The dominance of Bitcoin

The cryptocurrency that has always boasted the largest capitalization is Bitcoin, but lately its dominance is not as bright as it used to be, although it is still the most widespread and used virtual currency in the world.

Bitcoin’s capitalization ranks first CoinMarketCap with $362,384,604,482 and a circulating supply of 19,143,606 BTC out of a total of 21,000,000 BTC.

This year, Bitcoin’s appeal to senior or junior investors, while remaining constant, had started with values ​​close to the lowest sides since 2018 to date, which are around 39/40%, to be precise. The lowest 2022 for now was what was recorded on 16 January when the figure was 39.36%.

Bitcoin’s share of total cryptocurrency market capitalization registers four-year lows, the weakest figure since June 2018 according to the CMC.

The year’s high for dominance was reached on June 11th at 48.36%, but from that date to today the number has seamlessly dropped to 39.53% today, levels first seen in mid-June and very close to 2018 – the lichens.

After piercing the $20,000 resistance and the $19,000 resistance today, the currency stands at $18,723, a third of the value it boasted in June last year.

The crypto market finally made it preserve the 200-week moving average (MA)an important achievement in the bear markets, although BTC/USD did not have quite the same fate.

The flat calm for both Ethereum and BTC among discerning investors is not helping, nor is the Federal Reserve’s aggressive monetary policy announced and implemented by Jerome Powell.

The President of the US Federal Reserve at Jackson Hole said he is determined to continue with an iron fist on his rate hike policy, and analysts predict that at the upcoming FOMC in September, the choice will come down to a 75 basis points increasea value that the market should have already discounted.

Market downturns affect the value of the digital currency by negatively affecting the value of the coin to the extent that it has reached its current value.

What will happen after the merger to the dominance of the main crypt?

The hype currently permeating Ethereum and Merge it is about to take in rapid steps is well-founded and is the idea that investing in ETH at a good price before this transition can be a very profitable investment.

This buzz takes some of the attention away from Bitcoin, which despite everything is patiently waiting its turn knowing that regardless of how the merger goes, BTC will be able to recover capital quickly after this transition.

The consensus view among investors is that after Buterin’s currency is moved to Proof of Stake, capital will flow back to the currency with the largest capitalization.

Bitcoin can dump as little as $16,000 and some even go so far as to speculate on $10,000 as an achievable goal, but this is not the only hypothesis on the table.

BTC can regain dominance and rise to important heights that analysts place as high as $35,000/$38,000, not without veiled optimism.

The reality is that no one can know what BTC will do after the merger.

Protecting against volatility by opening both short and long positions with stop losses at the levels considered acceptable may lead to missing out on attractive opportunities, but it can also protect portfolios from large price changes which can mean serious losses.

How stock exchanges behave in the run-up to the merger

Many exchanges have considered protecting their customers by blocking ETH buying and selling operations. Many investors have seen this in the eye, who of course prefer not to have their hands tied at times when being timely can make all the difference.

What can help in this regard could be moving ETH to wallets like MetaMask or others so they have full control.

According to the famous trader Ched, keep an eye out 8-Day Exponential Moving Average (EMA) is very useful for guessing the direction of BTC.

The merger is near and in anticipation of it, yesterday was the last Bellatrix upgrade before the final Fork that will create a new and greener ETH without mining.

The waiting time will be short as everything is expected to be completed between the 10th and 20th of this month. After that, we will get a better sense of the direction Bitcoin will take and how its dominance will hold as investors’ attention shifts from ETH to BTC.