As a seasoned crypto investor with a decade of experience under my belt, I find myself leaning more towards the cautiously optimistic perspective presented by Benjamin Cowen and Kaleo. Having witnessed numerous market cycles, I can attest that predicting exact market movements is like attempting to catch water with a sieve.
Reflecting on a recent conversation with The David Lin Report, I, as a crypto investor, find myself questioning whether Bitcoin will reclaim the dominant position it held in December 2020. Benjamin Cowen, founder of Into The Cryptoverse, shares my skepticism. He suggests that while Bitcoin’s dominance may climb to roughly 60%, I personally believe it is improbable for it to reach the 70% it achieved at the end of last year.
By August 17, Bitcoin’s influence in the cryptocurrency market has risen to 57.37%, marking a 4.25% increase since mid-July and a significant 11.20% surge since the beginning of this year, as reported by TradingView. Cowen suggests that when altcoins gain popularity, Bitcoin’s influence tends to decrease over time.
Despite a potential rise in Bitcoin’s influence, Cowen is uncertain if it will revert to its maximum level from late 2020. Instead, they predict that Bitcoin might achieve approximately 60% dominance by as early as September or as late as December.
As a crypto investor, I’ve been considering the perspective shared by Kaleo, a well-known figure in our community with over 643,700 followers on X. On August 9, Kaleo hinted that Bitcoin’s dominance might have reached its zenith for this cycle. If Bitcoin’s dominance were to drop below 50%, according to Kaleo, it could signal a robust phase for alternative cryptocurrencies (altcoins), offering potential opportunities for diversification in our portfolios.
By December 2020, Bitcoin’s dominance peaked at 70.23%, just before its value skyrocketed approximately 220% to reach $61,283 by March 2021. Notably, Cowen points out that the current market landscape differs from previous cycles because the market for stablecoins is significantly larger compared to what it was in 2019.
Cowen also proposed examining the influence of Bitcoin alongside that of Tether (USDT), a significant stablecoin. He elaborated that the collective dominance of Bitcoin and USDT amounts to approximately 63.07%, which resembles levels observed around mid-2019, prior to substantial alterations in Federal Reserve policies.
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2024-08-18 14:29