BTC dominance – There are quite a few intriguing metrics to determine the position of Bitcoin in the financial market. However, there is also such a thing called the Bitcoin Dominance Index. This “index” measures the market cap of Bitcoin compared to the overall market cap of all cryptocurrencies in existence. It is an interesting factor to look at, although it doesn’t necessarily tell the whole story either.
Since the addition of new popular coins like LTC, Ether, and Ripple, BTC’s dominance has been under siege. As these new coins increase popularity, so to does their marketcap, which in turn grows the entire marketcap of the cryptocurrency markets. Even though the most popular cryptocurrency is still bitcoin, its undisputed position has taken a few bumps along the road. In fact, Bitcoin’s dominance has dipped to 59.7% as the previous low, back in July of 2017. This was due to the increase in price for Ethereum. As Ethereum rose to around half of the marketcap of Bitcoin, it took the second spot on coinmarketcap and increased the ratio. This was called the ‘flippening’.
Around this event many Ethereum fans wanted to track the flippening, so they created this website: http://www.flippening.watch/
Now there is a new competitor
(XRP) Ripple, a centralized banking protocol that allows for cryptocurrency to meet ACH has been on a massive bull run. Starting at its stable price of $0.20, XRP hit a high of $2.88 on bithumb. With this recent price spike, the marketcap of XRP has increased from $9bln to over $90 bln. What a time to be a live, 10x increase within a week for the second largest coin and bringing down the BTC dominance to a 6 month low is impressive but, Ripple has plenty of room to grow before it is considered to be ‘overtaking’ bitcoin.
If we see this trend continue and XRP hits $5, we can expect a month long pull back settling back around the $2 range, leaving XRP the new number 2.
What do this mean for the other coins?
What about Ether? The BTC dominance chart shows that Ripple isn’t the only coin increasing, look at the ethereum line again. Blue is Ripple. White are other altcoins. Dark Purple is Ethereum. Green is Bcash, which is also on a nice increase.
As we can see, Ripple is only just now getting to the level of dominance that Ethereum has had for the last 6 months, and its the same story for the white assortment of altcoins. Ripple looks like its spiking hard, and will drop hard just the same. Predictions: XRP $1.75 low, $4.25 high, Ethereum will respond to this and spike upwards to $1,600