Cryptocurrency
Bitcoin Dominance Readies Deadly Blow Against Altcoins, Indicator Says
As reported on NewsBTC, “Bitcoin is up over 70% year to date and its recent break through resistance at $10,000 helped propel altcoins toward even stronger ROI. Several altcoins are up well over a few hundred percent, beating out the first-ever cryptocurrency by a wide margin. This all could soon reverse according to a handful of signals […]
As reported on NewsBTC, “Bitcoin is up over 70% year to date and its recent break through resistance at $10,000 helped propel altcoins toward even stronger ROI. Several altcoins are up well over a few hundred percent, beating out the first-ever cryptocurrency by a wide margin.
This all could soon reverse according to a handful of signals on BTC dominance charts, causing Bitcoin to vastly outperform the rest of the crypto market.
Bitcoin is the first-ever cryptocurrency and anything that came after it is considered an altcoin, or a stablecoin. Stablecoins are backed 1:1 by USD or another fiat currency and assets to ensure stable prices with limited fluctuation. Altcoins can be just about anything, with some designed for smart contracts, others as payment tokens, and several as nothing more than worthless coins to speculate over.
These different types of crypto assets often have an inverse or correlated relationship, depending on market conditions.
For example, in 2019 when Bitcoin rallied to $14,000 – potentially its next target above current levels – altcoins were decimated in its wake. This year, however, altcoins are soaring, helping to carry Bitcoin higher. Together, the two asset types are pumping, yet Bitcoin dominance has been falling.