As Bitcoin Dominance Hits 40%, Experts Tell Us What's Coming For The 'King Coin' (2023)

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As BTC prices continue to crash and altcoin dominance surpass Bitcoin’s, many ponder on the next feat for the digital asset.

We talked to experts about this and heard their views on what exactly is going on. Here is what they had to say.

Brian Dechesare Founder, Breaking Into Wall Street

“This most recent market drop isn’t a reason to give up on Bitcoin completely – it can and will likely recover again. The nature of the crypto market is unregulated and highly volatile, so fluctuations like this are expected.

Just as in other investment markets, the drop will lead investors to grab more at the perceived low, and then it will rebound. 95% of crypto experts and academics think we won’t see Bitcoin’s peak for several months.

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Long-term, the inefficiency and environmental impact of Bitcoin are likely to share more of the market with better, more green altcoin options. If you’re wondering where to invest in crypto, keep in mind these investments are incredibly high-risk and spread your funds among several different coins that seem promising”.

Nate Tsang, founder and CEO at WallStreetZen

“Bitcoin has been moving toward a gold-like asset in the crypto space for quite a while. It will always be the first currency thought of when people mention cryptocurrency, but the other altcoins simply have more usability, flexibility, and even meme potential (Doge) than Bitcoin does.

You’ll see people holding onto Bitcoin because of its outsized value, which will go up, but the proliferation of other coins will mean it will have a plurality rather than an outsized market position. Once it slips below 50% it’ll land comfortably at a lower number”.

Scott Melker, Notable Crypto Trader & Investor,

“This is still the beginning for Bitcoin – we are in the early innings. Market dominance is a skewed metric, as countless new coins enter the space and contribute to the altcoin marketcap, naturally diminishing Bitcoin dominance. Further, altcoins beginning to have a life of their own is a sign that crypto is maturing. We are seeing a healthy correction for Bitcoin, which is usually when altcoins shine. The king will eventually rise again”.

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Sam Kim, Founding Partner at Umbrella Network

“No, the loss of market dominance doesn’t mark the end of Bitcoin but rather that crypto is maturing and actual use cases that generate economic value are surging. Crypto was largely a store of value until fairly recently, and Bitcoin is still the best store of value in the world, but now there is true utility. Bitcoin’s loss of market dominance was just a matter of time”.

Remko Poierrie CFO at Rubix

“It will not be the end of Bitcoin, but it will be a change for bitcoin. People are realizing the limitations it has in terms of blockchain capabilities and environmental impact. From a payment perspective, it will need to make space for the new coins which are built on the next-generation blockchain. But due to its scarcity, Bitcoin will be around as a “precious” mineral the same way the dollar replaced gold”.

Adam Morris, Co-Founder at Crypto Head

“It’s very unlikely that Bitcoin will lose market dominance in the near future. Bitcoin dropping in market dominance is expected during a bull market, in the 2017 bull-run Bitcoin dropped to 32.81% market dominance. This is because a lot more retail investors put money into the altcoin market during a bull run. Currently, Bitcoin dominance is hovering around 40% so this is not out of the ordinary”.

Felix Shipkevich, Principal at Shipkevich PLLC

“It’s not the end of Bitcoin, though Bitcoin will likely face a lot of volatility in the next few years as it still confronted with uncertainty / challenges in the legal and regulatory space”.

Kent Barton, Head of Research and Development at Shapeshift

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“Throughout its 12-year history, Bitcoin has seen dozens of sharp pullbacks in its price. Some have been prompted by negative news, while others were simply bouts of heavy profit-taking. In each case, those pullbacks were accompanied by misguided speculation that the platform had failed. These skeptical observers missed an important point: Bitcoin is an incredibly resilient network with significant adoption behind it that offers a compelling alternative to the legacy financial system.

As central banks create more money and go deeper into debt, the value proposition for a “Plan B” is increasingly attractive. While potholes do exist on the road to greater adoption—everything from regulatory challenges to widespread confusion about how the technology works—this inflation-driven dynamic has created a powerful incentive for both institutional and retail investors”.

Clayton Moore, Founder and CEO of NetCents

“When we look back on the history of Bitcoin, we see this question asked time and time again. Every time the price of Bitcoin falls, critics are quick to announce that this is the end. However, I think that Bitcoin losing some of its market dominance is not necessarily a bad thing. It simply illustrates that the cryptocurrency market is maturing, and other currencies are coming into focus.

I think that Bitcoin ultimately won’t be a currency for small transactions, but rather a hedge against inflation. So, before it reaches a more stabilized state, it’s natural for Bitcoin to experience volatility along the way. Right now is a very interesting time for cryptocurrency. This is because so many new people got started with crypto in 2021, and Bitcoin was most people’s first purchase.

When there are a lot of newcomers buying crypto at the same time, figures like Elon Musk can take advantage of the situation to manipulate the market. This is what we’re experiencing now on social media. Unfortunately, it’s those short-term holders who will lose their money. On the other hand, when will look at the behavior of long-term holders, they have consistently bought the dips. This is no different.

Many people forget that the cryptocurrency market is still young. As we continue to educate the masses about cryptocurrency, I think that these massive price swings will become less common. The long-term story of Bitcoin is only just beginning. Although we’ll see some of its market dominance fade with time, I think that Bitcoin will remain a pillar of the cryptocurrency market”.

As Bitcoin Dominance Hits 40%, Experts Tell Us What's Coming For The 'King Coin' (2)

Adrian Pollard, Co-Founder at bitHolla

“Bitcoin does have a chance of losing dominance in my opinion simply due to the fact that other new coins will always be created and the total market cap of ‘other’ coins will always grow. Coin creation is getting easier and easier, even creating exchanges with open-source white-label exchange software has reduced in cost and time. This means that new markets will continue to chip away at Bitcoin’s dominance.

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Many people are pointing towards Ethereum as the reason for the reduction of Bitcoin’s dominance which is true because a majority of new coins are being made on the Ethereum ERC-20 protocol.

In the attached chart we can see that Bitcoin dominance was threatened back in July of 2017, and Bitcoin never got the chance to reclaim back its dominance of 80%. It now is returning back to 40% and considering the time the crypto industry has had to mature that it is not unreasonable for Bitcoin dominance to be reduced to around 25% for the first time.

In my opinion, it does not matter if Bitcoin dominance is reduced because it just means that the crypto pie has grown larger and that means more crypto platforms, ideas, and opportunities. Bitcoin dominance could one day be only 10% to 20% with the majority of the cryptocurrency capitalization going towards ‘others’ which is a mix of smaller unknown coins”.

Vassili Volkov, Community Manager at Kryll.io

“The relative strength index (RSI) of the crypto market (here BTC dominance and ETH/XBT) is far from having reached extreme valuations compared to its history from March to July 2017. So there is still a chance that altcoins will rebound. If we take this comparison, we can legitimately think that there will be some back and forth at different thresholds before the RSI BTC dominance returns to the 50 level (neutral zone) or even higher to weaken the rise of altcoins.

As a reminder: the VIX index “fear index” in the stock market is something to watch as it can catalyze this rise in BTC dominance; a consequence of a general pullback of altcoins to BTC value while waiting to unload again during the next cycle”.

Marisa McKnight, Head of Product at Liquid

“Bitcoin is down over 20% in the last week. In fact, the entire crypto market cap fell by 23% over the last five days. Remember volatility? It is real, and this is not the first time we have witnessed this. In a major event last year, BTC fell by almost 50% and then witnessed a stellar 1000% growth in one year.

While Tesla’s decision to stop accepting BTC as payment has been the trigger for the BTC dip, institutions are buying it; the market has seen an institutional investment of $10B over the past month. MicroStrategy just bought $10.0 million worth of BTC.

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There is manipulation & FUD driving a significant BTC dip – whether it is temporary, or a long-term phenomenon is a hard thing to comment on at the moment. It is not the volatility that’s concerning, but the fact that the market is responding to one person’s opinion, indicating that the crypto landscape is still young and sensitive to individual-driven sentiment.

With individuals moving the market so much, we still have some time before we see true decentralization, but it will definitely be interesting to witness where we go from here”.

FAQs

What does Bitcoin dominance tell us? ›

Because altcoins still heavily react to Bitcoin's price movements and its changing dominance, Bitcoin's dominance ratio can be used as a tool to gauge the crypto market's current sentiment. Most of the time, altcoins trade either in a down- or an uptrend against Bitcoin.

What is Bitcoin dominance ratio? ›

The bitcoin dominance chart shows how dominant BTC is compared to other cryptocurrencies. It is a percentage value where the BTC market cap is divided by the total market cap and multiplied by 100.

Which crypto has the highest market dominance? ›

30 Symbols
  • BTC-USD16,586.78147.52% -
  • ETH-USD1,218.2436.68% -
  • USDT-USD1.000.00% -
  • BNB-USD313.7918.12% -
  • USDC-USD1.000.00% -
  • BUSD-USD1.000.00% -
  • XRP-USD0.41-0.00% -
  • DOGE-USD0.090.01% -

What happens when Bitcoin Dominance rises? ›

When the Bitcoin Dominance increases with a rise in Bitcoin price, it means that Bitcoin is performing better than the altcoins. This indicates a positive market sentiment for Bitcoin and signals investors to buy.

What happens when BTC Dominance drops? ›

If Bitcoin dominance drops, users might certainly expect an altcoin bull run and can trade accordingly. That said, a Bitcoin price dip could occur if users are pulling funds out of all cryptocurrencies, resulting in a lower crypto market capitalization overall.

How do you predict Bitcoin Dominance? ›

The level of Bitcoin dominance is determined by comparing the total market capitalization of Bitcoin to the total market capitalization of all other cryptocurrencies combined. The term crypto market capitalization refers to the total market value of cryptocurrencies.

What affects BTC Dominance? ›

Interestingly, Bitcoin dominance is often affected by the so-called “alt seasons”, in which altcoins gain market share relative to Bitcoin, thus reducing Bitcoin's dominance. Note, however, that Bitcoin dominance is not always directly affected by bull or bear markets because it is a ratio, not an absolute term.

What percentage of Bitcoin should be in your portfolio? ›

Assuming you are a long-term investor, a simple way to think about this is to ask yourself how confident you are that the crypto industry will continue to grow over time. Then decide how much you want to invest into a diversified portfolio based on that, no more than 5% of your investable assets.

What is the next big cryptocurrency to explode in 2022? ›

DeFi Coin – Popular Pick for the Next Cryptocurrency to Explode in 2022. Cardano – Leading Blockchain Network with Rebound Potential. Ripple – Popular Crypto Project Set to Bounce Back in 2022. ApeCoin – Next Best Crypto with 'Meme Coin' Potential.

Which crypto has highest potential to grow? ›

The majority in the crypto community conclude that Ethereum has the highest potential for value gain. Some expect it to rally by as much as 10000% before 2030 to reach $100k and flip BTC as the most valuable crypto project.

What is the most profitable crypto strategy? ›

However, the primary objective of scalping is to make the most profit from the shortest price fluctuations. And thanks to the volatile nature of cryptocurrencies, scalping has proven to be one of the best trading strategies.

What will cause Bitcoin price to rise? ›

The combination of supply, demand, production costs, competition, regulatory developments, and the media coverage that follows influences investor outlook, which is one of the most significant factors affecting cryptocurrency prices.

Why do other coins go up when Bitcoin goes up? ›

The fundamental reason behind altcoins following Bitcoin is because altcoin prices are typically measured in Bitcoin. The original crypto asset may be flanked by over 3,000 competitors, but it still commands over half of the entire cryptocurrency market cap.

Which coins are most correlated with Bitcoin? ›

Cryptowatch
  • BTC.
  • ETH. Ethereum.
  • LTC. Litecoin.
  • XRP. XRP.
  • ADA. Cardano.
  • USDT. Tether.

What happens when BTC hits max supply? ›

Bitcoin mining fees will disappear when the Bitcoin supply reaches 21 million. Miners will likely earn income only from transaction processing fees, rather than a combination of block rewards and transaction fees. PlanetCrypto. "How Many Bitcoin Are Left in 2022?"

Why do all coins drop when Bitcoin drops? ›

Most pure crypto traders never even compare altcoins' prices to fiat currencies. Instead, they compare their value to BTC, as it's the market pair that matters the most to them. As such it's completely understandable to see the entire market prices drop when Bitcoin's market sentiment plummets.

What can cause Bitcoin to drop? ›

Market supply and demand affect cryptocurrency prices. The more popular a cryptocurrency is, the higher the demand and price. Similarly, if there is less demand and an increased supply of an asset due to the mass-selling of a token, then the price will fall.

What is the best Bitcoin prediction? ›

In Analytics Insight, Sanyal says that market analysts predict that Bitcoin could hit USD $100,000 by the end of 2023, and others say it can climb to the mark in the first quarter of 2022. Others write that Bitcoin won't reach more than USD $70,000 by the end of 2022.

How high can Bitcoins be predicted? ›

Bitcoin had a rocky first half of the year, but experts still say it will eventually hit $100,000 — and that it's more a matter of when, not if.
...
Bitcoin's Price Prediction Highs and Lows.
YearPotential HighPotential Low
2022$38,000$10,000
2023$50,000$38,000
2025$100,000$50,000
2030$12.5 million$150,000

What is the most accurate indicator for crypto? ›

#1 – Relative Strength Index (RSI)

The RSI is a momentum indicator (or oscillator) developed by a technical analyst, Welles Wilder, in 1978. Using a complicated formula, it can measure the movement in a price change and the speed and magnitude of change in price by evaluating the oversold and overbought conditions.

Who controls most of the Bitcoin? ›

Let's take a look at the individuals that hold the most bitcoin.
  • Satoshi Nakamoto (~1.1 million BTC) ...
  • The Winklevoss Twins (70,000 BTC) ...
  • Tim Draper (29,000+ BTC) ...
  • Michael Saylor (17,732 BTC) ...
  • Public Companies. ...
  • Private Companies. ...
  • Countries & Governments.
17 Oct 2022

Who controls the amount of Bitcoin in circulation? ›

Instead, the circulating supply is entirely determined by the users of the network. The creator of the Bitcoin network—Satoshi Nakamoto—created 21 million Bitcoins that sit in a pool. To receive Bitcoins from this pool, miners have to solve complex equations to verify transactions.

How much Bitcoin should the average person own? ›

How Much Crypto Should You Own? Most experts agree that cryptocurrencies should make up no more than 5% of your portfolio.

Should I put all my money in crypto? ›

“And realistically, even someone young shouldn't keep all their money there. Too much risk and potential for a crypto exchange to go bankrupt or get hacked.” But financial advisers agree on one thing: If you are invested in crypto, it should be a small percentage of your total portfolio.

How much should I throw in Bitcoin? ›

The general rule of thumb across the board is that investors should never allocate more than 5% of the overall portfolio to Bitcoin - and cryptocurrency in general. This is because Bitcoin is viewed as a high-risk asset, so the portfolio should be balanced out with other, more established asset classes.

What is the cheapest crypto to explode in 2022? ›

Top 13 Potential Cryptocurrency to Explode in 2022
  • Dash 2 Trade (D2T) - Overall Best Utility Token with Crypto Signals Set to Explode.
  • RobotEra (TARO) - Top P2E Crypto in Newly Launched Presale.
  • IMPT - Green Crypto Project Enabling Users to Reduce Carbon Footprint.

What Coin could be the next bitcoin? ›

Waves. WAVES-USD is the final possible candidate to be the next big crypto on the market. Essentially, Waves is a blockchain platform for building Dapps and smart contracts as well as launching custom crypto tokens. The platform uses a variation of the PoS consensus mechanism called leased proof-of-stake (LPoS).

What is the next big thing like bitcoin? ›

Cardano (ADA)

Cardano is a proof-of-stake blockchain platform. It's intended to be the next generation of the Ethereum network with a flexible blockchain and scalable platform for running smart contracts. Cardano was introduced as an “Ethereum killer” and a valuable alternative to Bitcoin.

Which crypto can give 1000x in 2022? ›

1000x Potential Tokens of Q4 2022: Kittynomica, VeChain and Cosmos.

Which coin can go 100x? ›

Dogecoin was launched in the year 2013, and since then, it has been performing exceptionally well, so much so that during the last couple of years it has evolved to become one of the leading cryptocurrencies in the entire cryptocurrency market. Dogecoin is one of the best cryptocurrencies for 100x gain.

Which cryptocurrency has the brightest future? ›

Polkadot is one of the most secure and innovative networks in the crypto space today. Analysts believe that the DOT token will skyrocket in 2023, since the growing popularity and development of the Web 3.0 domain has made the cryptocurrency, one of the most popular digital asset investments in the market.

Which crypto to buy to become a millionaire? ›

These top 10 cryptocurrencies have the potential to make you a millionaire in 2023!
  • Ethereum. Ethereum is a platform powered by blockchain technology that is best known for its native cryptocurrency, called Ether, or ETH, or simply Ethereum. ...
  • Tether. ...
  • Polygon. ...
  • XRP. ...
  • Binance Coin. ...
  • Cardano. ...
  • Shiba Inu. ...
  • Dogecoin.
24 Aug 2022

What is the best crypto to invest in for long term? ›

Investors can look at top altcoins such as Ethereum, XRP and MATIC as the best long-term investments for HODLing. On the other hand, many emerging tokens such as IBAT, TAMA and lBLOCK can also provide huge long-term returns.

How do you Analyse a BTC Dominance chart? ›

It's calculated by dividing a coin market cap by the overall market cap of the top 125 coins and then multiplying it by 100. The result of these calculations and how it changes over time you can see on the dominance chart — calculated for you by TradingView.

Who decides when Bitcoin goes up or down? ›

Bitcoin's price is primarily affected by its supply, the market's demand for it, availability, competing cryptocurrencies, and investor sentiment. Bitcoin supply is limited—there is a finite number of bitcoin, and the final coins are projected to be mined in 2140.

Why is crypto male dominated? ›

Major players in today's cryptocurrency and blockchain companies were born from other male-dominated industries, like Finance and Tech. This gap can be traced back decades, to the days when women weren't legally allowed to manage their own finances without male supervision.

What is the best indicator for BTC? ›

#1 – Relative Strength Index (RSI)

The RSI is a momentum indicator (or oscillator) developed by a technical analyst, Welles Wilder, in 1978. Using a complicated formula, it can measure the movement in a price change and the speed and magnitude of change in price by evaluating the oversold and overbought conditions.

How long does it take to mine 1 Bitcoin? ›

It takes around 10 minutes to mine just one Bitcoin, though this is with ideal hardware and software, which isn't always affordable and only a few users can boast the luxury of. More commonly and reasonably, most users can mine a Bitcoin in 30 days.

Why do other coins go down when BTC goes down? ›

In the digital currency space, it's common for many coins and tokens to move in similar patterns. When bitcoin (BTC), the largest cryptocurrency by market cap, goes up, other digital tokens tend to increase in value as well. When BTC declines, it's likely that other players in the space will drop at the same time.

What race owns the most crypto? ›

Surveys show that Black consumers are more likely than white consumers to own cryptocurrencies.

What age group buys the most crypto? ›

94% of Crypto Buyers are 18-40 Years Old.

What cryptocurrency are politicians buying? ›

The most popular crypto by far was bitcoin, with trades totaling an estimated $229,000. Lawmakers even got into the meme coin trend, with about roughly $32,000 in dogecoin trading.

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