Bitcoin Dominance: One Shining Moment

Hey everyone and thanks for jumping back Into the cryptoverse today we're going To talk about the Bitcoin dominance Surprise surprise One Shining Moment if You guys like the content make sure you Subscribe to the channel give the video A thumbs up and also check out the sale On into the cryptiverse premium uh into The before we jump in I Wanted to congratulate the person who Came in first in the into the basketball Verse bracket challenge for the NCAA Tournament Um they they came in first by only 10 Points a number of you had UConn winning But one person stood Above the Rest with 1170 points so that if that person of Course will be winning a a one-year Subscription to ITC or into the Cryptographers so congratulations again To that person now I wanted to talk a Bit about the Bitcoin dominance We are around that 49 threshold we've Talked about the significance of that 49 Threshold for a long time you know if You look at the dominance closely it you Know it can sometimes glitch in the Short term where like it says it went to A certain level but it didn't Um and so on and so forth but the point Is is we saw last night it went to Around the 49 level right and even Sometime today went round to the 49 Level so we have reached this prior

Level from back over here this is a Pretty important level or a lion in the Sand for the Bitcoin dominance do note That what got us into this range a long Time ago was in fact a major sell-off of Well maybe not sell off but just a a a Flow of money into the altcoin market Sort of leaving Bitcoin after Bitcoins Parabolic rally and that's sort of what Got us down into this into the this Range in the first place and now we find Ourselves At a very similar spot but we are Potentially trying to press higher here Do note that we've already taken out the High from June of 2022 and the high from October 2021 and now we're sitting right Around that high from the from the Summer of 2021 I would also point out That in the last during the last cycle When we finally saw the dominance surge Higher if you sort of zoom in on on some Of the lower time frames you'll note That we sort of uh we kind of flirted With this range for a little while Before breaking through it right we came Up to the prior Range High on the Bitcoin dominance that we were hit that We hit in March of 2018 it took us until July 2018 to get there and and we kind Of flirted with that level until August So it took about a full month Um for for us to maybe not quite a full Month this was late July and then we

Were you know out of it by maybe the Middle part of August so maybe two or Three weeks is is the amount of time we Were flirting with that love goal But Ultimately the dominance broke up to the Higher To much higher levels do note that the Rally by Bitcoin USD back then ended Right around that point where it it you Know basically came back up to the range Highs and um and sort of you know it Sort of remains somewhat stagnant for a Couple weeks or so and then we and then The dominance continued to to push much Higher and I want to talk a little bit About the altcoin market in general and We've talked about this quite a lot and If you go take a look at total three Which is the altcoin market you will Still see that even though Bitcoin broke Above its November 2021 High long or 2022 the November 2022 High long ago Um and ethereum did as well total three Which is the altcoin market has been Unable to do so and in the context of uh Some some analogies in the NBA the the Altcoin market they're just bus riders Right like they're not driving the bus You can't tell me you're you're the king Of the crypto verse if if Bitcoin pull Back can slow you down it just doesn't Work like that and and I think some Counterpoints to that are well maybe is Ethereum driving the bus right is

Ethereum driving the bus and my retort To that once again Because what happened when ethereum was Driving the bus back during the merge it Still just simply put in a a lower high On its Bitcoin pair again not really Representative of of the asset that's Driving the bus it's more it's to me It's more a representative of of an Asset that is is a bus rider Um in in my opinion okay we we've seen It play out time and time again where Bitcoin USD rallies for a while the the Rest of the market will can rally a Little bit beyond it but if Bitcoin Starts to go back the other direction It's going to pull everything back down With it right so remember Bitcoin drives The bus everything else they're just bus Riders along for the ride That's all it is okay and I don't really Think it's anything more and again you Know another another point that I I'll Make as well is is looking at at say Bitcoin USD and and looking at at when Ethereum really joined into the you know Into the crypto verse in 2015 and and You know my response is that ethereum is Not really the MVP here when when you Basically had Bitcoin already up 30 Million percent before ethereum you know Before ethereum even joined the Cryptiverse right so you can't say You're the MVP when you join you know

You join an asset class that's already Up 30 million percenter so that's just And that's just Bitcoin so I do think It's important for us to recognize that Bitcoin is driving the bus and the Altcoin market they're the bus riders Right yes they're gonna go up in a bull Market but you know so what right you're You're going to see Assets in general go Up in a bull market but it doesn't Necessarily mean they're driving the bus They are simply bus riders they are Along for the ride and there's a good Chance that they're not they're going to Miss the ride next time okay so you know In in 2024 2025 a good chance some of The altcoins that you that you really Like they could miss the bus on the next One but guess who's going to be driving The bus guess who's driving the bus now Guess who's going to be driving the bus In 2024 and in 2025 and so on and so Forth It's Bitcoin Bitcoin drives the Bus everything else is a bus rider if You look at at the Bitcoin dominance we Are currently sitting at just below 49 So again we we did we did a couple live Streams recently watching this we came Back up to the range highs Consolidation is fine we've said that Many times we Consolidated here for a While before breaking out and a year Before breaking out and here before Breaking out

And now that we find ourselves at the Range High I know I know some people are Getting nervous Um but I would still argue that this In general is is likely going to break Before too long okay I don't think that um I I don't think There's the narrative is there to bring The dominance back down to to the lower Levels and and again the other the other Point to consider as well is is the Dominance excluding stable coins right We've always talked about that and and It's probably a better way to sort of Measure the Bitcoin dominance in general Is is to measure it excluding stable Coins and you'll see that when you Exclude the stablecoin market it's Currently at 52.8 percent now the Highest it went back in in June of 2022 Was around 55.3 percent so maybe about Two and a half percent higher than where It currently is which also could be an Important milestone for the dominance to Get passed on excluding Stables that Would need to go up another two and a Half percent or so but again something To consider and then the last thing I Would like to look at here is the Workbench the Bitcoin dominance Comparison you can see that the the Dominance metrics including and Excluding stable coins are starting to Converge the reason for that as we've

Mentioned is if you look at the stable Coin market cap let's just say usdt plus Usdc plus die plus busd one of the Things you'll note is that It continues to sort of slowly Trend Down so the market cap of the stablecoin Market is trending down and and despite You know and because of that we are Seeing the convergence of the Bitcoin Dominance metrics with and without Stable coins this is why I said long ago You know I know people like the one with Stable coins I know some people like the One without them but at the end of the Day they're both going to go up right Because the stable coin market cap is Going down and and I'm not saying They're going to completely converge but They could uh but at least you'll see Them get much closer and another way to Visualize that is to just simply add a Formula over here and take M3 minus M2 So the dominance without stable coins Minus the dominance with and evaluate That put it on a linear scale and then Hide everything else and again you can See that the the Delta between these two Metrics is continuing to go down at one Point the dominance difference between The two metrics was you know about 9.61 Now the difference is is less than six Percent maybe about five point six Percent so they are getting pretty close Um and and um I I think that they they

Will likely continue to converge to one Another so the moral of the story really For all this is that the dominance Continues to push higher despite Proclamations by many that it won't Um the idea that you know the idea that Many have put forth about this time Being different for ethereum has just Simply been not true every time that it Pushes higher it is nothing more than a Lower high and it has been not only Since the merge uh the the most common Form of criticism that I see and it's Fair is that while you're not Considering the the new tokenomics of Ethereum right you're not considering You're not taking that into account I Would argue you know the market did take That into account and it still has been Nothing more than lower highs since the Merge furthermore the merge was a lower High as measured from the bull market Phase back in in at ethereum bitcoin's Peak back at the end of 2021 so when did Ethereum Bitcoin Peak right at right Right around the time that Bitcoin USD Did that's what I'm saying saying Bitcoin is the bus driver everything Else their bus riders and they just Stick along for the ride so we'll see Where ethereum ultimately ends up but I'm guessing that you're going to see at Some point this year I'm guessing you're Going to see this move back down to the

To the 0.03 to 0.04 level Um of course it's not going to move There in a linear fashion you should Expect it to be a somewhat of a Stochastic process anytime we get any Type of a pump on the ethereum Bitcoin Valuation it it it causes a lot of People to sort of second guess every you Know everything in this entire Trend but Just look at the trend right it's just Been one lower high after another for Basically for a year and a half And An Inconvenient Truth is that Ethereum's valuation against Bitcoin has Been putting in lower highs since 2017. Doubles Advocate it's also been putting In higher lows stay tuned until 2026 Where we figure out what way it's going To ultimately break if you guys like the Content make sure you subscribe to the Channel give the video a thumbs up and Again check out the sale on into the Reverse premium at into see you guys next Time bye


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