All I want for Christmas is Bitcoin! 🌲🎅🏻
“All I want for Christmas is Bitcoin.” That seems to be the mantra we’re hearing from the institutional investors, who’ve been knocking the doors off the crypto markets in the past weeks.
As we pointed out in late September, the ‘Bitcoin Dominance’ - the index that represents the weight of Bitcoin as a percentage of the total market capitalization of all cryptocurrencies - has reversed its downtrend.
The index trending up means that investors are more confident holding Bitcoin over Altcoins. The chart shows that Bitcoin Dominance broke a downtrend that has lasted longer than one year. The scenario of a Bull market for Bitcoin in parallel with a Bear market for Altcoins seems unlikely, at least in USD terms. On the other side, allocating resources to Bitcoin could leave you with better risk-adjusted returns. The global macro trends seem to point in this direction in the short-term.
The paradox we see right now is that the regulatory environment appears to be getting clearer for Bitcoin, and at the same time becoming more doubtful for Altcoins. The SEC going after Ripple is a case in point. What if Ripple was just the first of many?
If you hold heavy Altcoin bags, you better ask Santa to bring the Bitcoin Dominance back into the green area soon.
Merry Christmas!
As we pointed out in late September, the ‘Bitcoin Dominance’ - the index that represents the weight of Bitcoin as a percentage of the total market capitalization of all cryptocurrencies - has reversed its downtrend.
The index trending up means that investors are more confident holding Bitcoin over Altcoins. The chart shows that Bitcoin Dominance broke a downtrend that has lasted longer than one year. The scenario of a Bull market for Bitcoin in parallel with a Bear market for Altcoins seems unlikely, at least in USD terms. On the other side, allocating resources to Bitcoin could leave you with better risk-adjusted returns. The global macro trends seem to point in this direction in the short-term.
The paradox we see right now is that the regulatory environment appears to be getting clearer for Bitcoin, and at the same time becoming more doubtful for Altcoins. The SEC going after Ripple is a case in point. What if Ripple was just the first of many?
If you hold heavy Altcoin bags, you better ask Santa to bring the Bitcoin Dominance back into the green area soon.
Merry Christmas!