I've plotted the BTC and ETH dominance on the chart. This chart gives us a very clear view on the amount of money in the crypto big-caps. In other words, the amount of money flowing towards the two safest bets within the crypto world.
At the moment of writing, BTC and ETH have a combined total of ~70% of the total marketcap, so for 70 cents of every dollar invested in crypto is currently in BTC or ETH.
Why is this important? It's important because it gives us either of two things:
- An indication of fear > the market is afraid to lose money, so it converts their funds from alts to BTC/ETH which are less likely to see large swings.
- An indication of strength > the market believes that the best bet to make money is in either BTC or ETH. See the 2019 pump and the one of 2023. On average, BTC and ETH are outperforming alts.
In my view, we're likely to see more marketcap (cash) flowing from alts to the two big caps. It has always happened before, and it will likely happen again. This will mean that, on longer timeframes, BTC and ETH will outperform the average altcoin in both bearish and bullish market conditions.
Be wary of your alt holdings over the coming months. This trend will most likely continue to be bullish until the next bull-cycle has started. My target lies somewhere between 80% and 70%.
At the moment of writing, BTC and ETH have a combined total of ~70% of the total marketcap, so for 70 cents of every dollar invested in crypto is currently in BTC or ETH.
Why is this important? It's important because it gives us either of two things:
- An indication of fear > the market is afraid to lose money, so it converts their funds from alts to BTC/ETH which are less likely to see large swings.
- An indication of strength > the market believes that the best bet to make money is in either BTC or ETH. See the 2019 pump and the one of 2023. On average, BTC and ETH are outperforming alts.
In my view, we're likely to see more marketcap (cash) flowing from alts to the two big caps. It has always happened before, and it will likely happen again. This will mean that, on longer timeframes, BTC and ETH will outperform the average altcoin in both bearish and bullish market conditions.
Be wary of your alt holdings over the coming months. This trend will most likely continue to be bullish until the next bull-cycle has started. My target lies somewhere between 80% and 70%.
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