• Bitcoin Dominance dropped due to a crypto market panic caused by Evergrande’s bankruptcy filing.
• Bitcoin Dominance (BTC.D) measures Bitcoin’s strength against altcoins, and it is calculated by dividing the BTC market by the total crypto market cap.
• The Founder of Crypto Capital Venture, Dan Gambardello, predicted further drops in BTC.D with new lows expected during the bull market.
Bitcoin Dominance Plummets During Crypto Market Mayhem
Crypto markets saw panic selling on August 17th leading to a 9% downside swing on the hourly candle for Bitcoin and $62.4 billion being wiped from the total crypto market cap. This caused Bitcoin’s “Dominance” to significantly drop, indicating altcoin strength amid the market mayhem.
What is Bitcoin Dominance?
Bitcoin Dominance (BTC.D) is calculated by dividing the BTC market by the total crypto market cap and provides a measure of how much value is held in Bitcoin compared to all other cryptocurrencies combined – if BTC dominance decreases then this indicates that altcoins are gaining relative value compared to Bitcoin. At time of writing this had dropped to 49.53%, putting it on track to test 49.48% support with 48.93% being its next level of significant support should this break as well .
Looking Back at 2021
Since the start of 2021, Bitcoin had been trending higher with an opening value of 42.04% reaching a high of 52.21% in late June before trending downwards since then due largely to several US banks collapsing which saw its highest daily candle move from 43