Introduction
Bitcoin is the first and most well-known cryptocurrency. It has a market capitalization of over $1 trillion, making it the largest cryptocurrency by far. Bitcoin dominance is a measure of Bitcoin’s market share within the cryptocurrency space. It is calculated by dividing Bitcoin’s market capitalization by the total market capitalization of all cryptocurrencies.
Total Market Cap
The total market capitalization of all cryptocurrencies peaked at $3 trillion in November 2021, but has since fallen to around $1 trillion. This is due to a number of factors, including the ongoing war in Ukraine, rising interest rates, and general market uncertainty.
Despite the recent decline, Nick believes that the total market capitalization of cryptocurrencies is poised to reach new highs in the next bullish market. Nick cites a number of factors to support this view, including the launch of Bitcoin spot ETFs and an increase in the number of cryptocurrency projects.
Bitcoin Dominance
Bitcoin dominance has historically fluctuated, but it tends to rise during bear markets. This is because investors often flock to Bitcoin as a safe haven asset during times of market turmoil.
Nick believes that Bitcoin dominance is likely to continue to rise in the near future due to the ongoing bear market. However, Nick also predicts that Bitcoin dominance will peak around 53.2-55% before declining during the next bullish market.
Market Cap and Bitcoin Dominance
The total market capitalization of cryptocurrencies is calculated by multiplying the circulating supply of all cryptocurrencies by their respective prices. Bitcoin dominance is calculated by dividing Bitcoin’s market capitalization by the total market capitalization of all cryptocurrencies.
Altcoins tend to perform better during periods of lower Bitcoin dominance. This is because investors are more likely to riskier assets when they believe that the overall market is on the rise.
Historical Trends
Historical trends show cycles of Bitcoin dominance rising and falling. These cycles are often correlated with market conditions, with Bitcoin dominance rising during bear markets and falling during bull markets.
Bear Market
Nick expects that the current bear market will lead to further market cap and altcoin bleeding. Nick also predicts that some altcoins may go to zero as the bear market continues.
Bear market rallies may occur, which could impact Bitcoin dominance. However, Nick believes that the overall trend is likely to be a continuation of rising Bitcoin dominance.
Bull Market
Nick anticipates that the next bullish market will push the total market capitalization of cryptocurrencies to new highs. Nick cites a number of factors to support this view, including the launch of Bitcoin spot ETFs and an increase in the number of cryptocurrency projects.
Nick also expects that Bitcoin dominance will fall during a bullish period. This is because investors are more likely to invest in altcoins when they believe that the overall market is on the rise.
Bitcoin’s Historical Dominance
Bitcoin dominance has experienced fluctuations over time. Peaks and troughs in Bitcoin dominance correspond to market conditions. Altcoin seasons, characterized by altcoins outperforming Bitcoin, occur during bear markets. Historical data shows Bitcoin dominance reaching levels above 60% at times.
Market Predictions
All market predictions are based on historical data, market analysis, and ongoing trends. Uncertainty remains in the cryptocurrency market, and predictions may vary.
Conclusion
The cryptocurrency market is highly volatile, and it is important to do your own research before investing. However, Nick believes that Bitcoin, the total market capitalization of cryptocurrencies, and Bitcoin dominance are all important metrics to watch when making investment decisions.
Community Engagement
Nick encourages viewers to like, subscribe, and join a Discord community for further discussions on cryptocurrency.
