Bitcoin dominance cycle suggests the 2017 crypto rally could repeat
For the purposes of historical comparison, it’s also worth noting that the pattern of the dominance chart currently looks much like it did during the earlier part of 2017.
As the markets have gone into meltdown since May 12, #Bitcoin (BTC) dominance has fluctuated dramatically, bucking 2021’s prevailing trend. Before the sell-off started in earnest, BTC dominance had been falling pretty steadily from around 70% in January to a low of under 40% by the time the crash was underway. At that point, BTC dominance was at its lowest since the summer of 2018. It has since recovered to above 43%.
If the same pattern is underway this time around, then the market is likely to be at the equivalent of summer 2017 when the alt season was just ramping up, and still some months away from Bitcoin’s price peak of around $20,000 in December 2017.
Of course, while the patterns draw some interesting parallels, #BTC dominance doesn’t necessarily tell that much about price. But it does offer insights into how the flagship asset is performing in relation to the rest of the markets, underpinning certain trends. So, what are the likely scenarios for BTC dominance, and what would it mean for the markets?
Follow the money flow
The money flow model is one potential predictor of where the markets could go. The model states that money flows from fiat into Bitcoin, and then down from large caps, through mid-caps to small-cap altcoins before redirecting back to BTC and, ultimately, back to fiat.
This model is interesting because it pretty much sums up what happened in 2017, except that the cycle played out twice as BTC surged toward the end of the year. So, if the 2017 scenario repeats itself, BTC dominance could continue to rise until the flagship asset sees another price peak, then fall as alt season accelerates once again. (at Hong Kong) https://www.instagram.com/p/CPg2fk0HtGw/?utm_medium=tumblr
What can be the impact of Bitcoin on the advertising sector of Paris?
What can be the impact of Bitcoin on the advertising sector of Paris?
The impact of Bitcoin on the advertising sector in Paris could be far-reaching, as this emerging new form of currency has already begun to disrupt the financial markets. As more businesses begin to accept Bitcoin for their goods and services, they will likely begin to advertise their products and services using this new form of payment. It could create a shift in the advertising landscape. Just…
