Bitcoin Dominance Index Reaches Nearly 45% as Altcoins Keep Getting Battered
There is always something interesting happening in the world of cryptocurrency. As of right now, the Bitcoin Dominance Index is making its mark once again. With the BDI at nearly 45%, most altcoins have once again become nothing more than an afterthought.
It is evident there is more to cryptocurrency than just Bitcoin. Numerous alternative currencies offer something Bitcoin does not. As such, diversification of one’s portfolio is always key. During volatile times like these past few weeks, that is much easier said than done. Everyone is converting altcoins back to Bitcoin, as that is the only currency people still have some confidence in. As such, the Bitcoin Dominance Index is rising quite rapidly.
The Curious Case of the Bitcoin Dominance Index
More specifically, the Bitcoin Dominance Index sits at 44.7%. That means Bitcoin itself represents 44.7% of the total cryptocurrency market cap’s value. With Ethereum taking a massive beating, and Cardano, NEO, and NEM not faring much better, things are certainly changing in favor of BTC. It will be interesting to see which of the altcoins can effectively recover in quick succession.
As is always the case, the Bitcoin Dominance Index is not a perfect metric. It does tell an interesting tale, albeit one that won’t surprise anyone. Bitcoin is the go-to asset when the markets turn extremely volatile. Altcoins eventually recover and push the BDI back down below 40%. This cycle repeats itself time and time again. There is zero reason to believe this will not happen again later this year.
Whether or not the Bitcoin Dominance Index will keep rising, is a different matter altogether. Due to these major losses, altcoins will also note bigger gains once the momentum turns again. It is uncanny how this industry works at times. There is no reason to panic or despair just yet, though. The best has yet to come for all cryptocurrencies, regardless of the current Bitcoin Dominance Index.
Header image courtesy of Shutterstock
Source: Read Full Article