Bitcoin has been the world’s largest cryptocurrency since its development. In the past few days, we’ve noticed a huge increase in its Bitcoin Dominance Index (BDI). This correlates with its recent price increase that was seen in the charts. The biggest question is whether this change shows if it’s time for Bitcoin to take control over the market.
What is the Bitcoin Dominance Index?
When it comes to cryptocurrency, different metrics determine which one is worth watching. For instance, market capitalization is a popular way to rank them as it measures how much value a cryptocurrency pair has within the overall market.
Another factor worth exploring is the trading value of the individual currencies. But there is one metric that’s stood out from the rest: The Bitcoin Dominance Index. It’s an interesting tool, but not everyone notices the benefit of using it.
The Bitcoin Dominance Index determines Bitcoin’s market share in comparison to the other currencies and altcoins combined. When Bitcoin was first developed in 2009, it was at 100% as there were no altcoins were present.
But, as Altcoins started to hit the market, it was close to 70%. However, this metric has been dropping over the years and has been below 35% regularly. Especially in late 2017, where the BDI was at an all-time low for the world’s largest cryptocurrency.
However, we are starting to see change in Bitcoin’s BDI as the market takes a turn in the bullish direction. As of now, it’s BDI is rising. The latest figure stands at 41.4%, which is interesting at its current rate. No other altcoin is mimicking Bitcoin’s growth these days. This shows signs of an interesting development, but one that shows an odd precedent.
Last year, Bitcoin displayed its dominance over the altcoin market until they’ve started to make their mark. By 2018, it’s possible to see Bitcoin show more signs of dominance in 2018.
Max Keiser’s Thoughts on the Bull Market
If Max Keiser‘s theory is correct, Bitcoin’s BDI is a sign of change in Bitcoin’s market trend. He states that Bitcoin’s price will continue to rise throughout 2018. As of now, BTC’s value is over $8,900. This shows a significant change in its value and confirms that Bitcoin is starting to rebound in value.
One has to wonder the value of the altcoins within the crypto market. While there are some that are in the top 15, most of them are half-completed projects at best. Additionally, some are trying to copy the same infrastructure as Bitcoin, and the rest aren’t even traditional cryptocurrencies. So, all of these tokens and altcoins have their own individual value according to spectators.
For now, Bitcoin’s BDI has the potential to continue to rise in value. On the other hand, Ethereum is in a sideways trading momentum. Additionally, XRP, NEO, Bitcoin Cash and a few other altcoins are stuck in the same trading trend as well.
Whether or not, we’ll see “large gains” for Bitcoin, it’s one of the best currencies to keep an eye on. If Max Keiser’s theory is true, then Bitcoin’s Dominance Index will increase up to 80% or higher. While this is an ambitious outlook, anything is possible within the world of cryptocurrency.
Disclaimer: Our content is made to educate our readers about the cryptocurrency market. Invest at your own risk.