The world of cryptocurrency has always been in a state of flux. The bull market that was December of 2017 ended at around January, and since then the market stabilized with people taking profits, and the prices of most cryptocurrencies are down by 30-40% since December. In fact, the total market capitalization went from a of roughly $814B, to as low as $333B, or at a decrease of 60%. Yikes.
But, recent news does indicate that the worst is over and the market is prepping up for another bull run.
Bitcoin Dominance Index
It’s no secret that Bitcoin has been the king of all cryptocurrencies since day 1. But in recent months, the influence of Bitcoin has waned, and it’s share in total market capitalization shows this. Bitcoin’s share fell as low as 36% last January. But since then it has since then surged to 40%, with the price of Bitcoin increasing as well, from around the $8000s to roughly around $11,400 as of this writing. The Bitcoin Dominance Index is a sign of things to come, articles like these note. People like Max Keiser, who works as for financial commentary, claim the Bitcoin price will continue to rise for the foreseeable future. Right now we are looking at a BTC value of just over $11,500. That is quite significant and further confirms Bitcoin is rebounding strongly.
The “textbook” Bitcoin Altcoin Cycle
We’ve seen this before. People are bullish with BTC, buy in, and the price increases. Then, their funds are diversified to other altcoins, first to the largest (Ripple, Ethereum and Bitcoin Cash among others), then to coins with smaller market caps. Overall, this benefits the entire cryptocurrency market, and the last time this happened was in December, and we all know what a fun ride that was
(before the crash of course).
The fact that the total marketcap has been increasing steadily is another sign of this shift in momentum.
And not only does this resemble December of last year, users even note how much it resembles last year in general. Signs look bullish for a crypto run, and the that would be on par for the $20 trillion by 2020 market cap Sen. Warner was talking about.
To conclude: hopefully the cryptocurrency market will continue to recover, but it seems a signals are showing a possible bull market in the coming weeks, or months. The time of heavy bags maybe a thing of the past, hopefully.