BTC Dominance At All Time High What's Next

At the moment of writing this $BTC currently holds a massive 49.5% dominance while $ETH holds just a 16.7% dominance. Bitcoin and Ethereum dominance has been a hot topic for a long while now with some perdicting years ago that Ethereum would in fact overtake Bitcoin in terms of having a higher dominance.

To be fair in the last bull run it came close with Ethereum pushing above a 20% dominance and bitcoin shrinking just under 40%. You can check out the hard below to see dominance levels. and you'll notice 2018 saw the first time where the all other crypto market cap beat out bitcoin for just a few days. The alt coin season...

The Bull

Many feel like we are on the start of the bull market but I have to say We honestly are still just recovering from the last few months sell off. Almost a year ago we were at these levels in terms of price so until we hit over these levels I would not consider us in a bull market.

Instead what's happening is it feels like many are starting to price in not only the BTC halving but also the very real Spot BTC ETF approval which is expected to happen early next year.

That event is currently slated to take place on April 22nd 2024 just 4 months into the new year. So if we do get the BTC Spot ETF approval early in the year we not only have that massive trigger for a rally but we also have a major scarcity factor with the halving taking place just 3 months after the expected ETF release.

Not one but two very bullish catalyst. My original prediction was for the next bull run that BTC would hit $110,000 now if both of these things hit I could see us touching closer to $200,000 while I'm sure others will speculate higher.
*This article is not financial advice and is for entertainment purposes only. Do your own research before investing and understand the risks.

Normally what happens in these bull markets is the following.
Prices start to pump in on speculation of news that has not yet happened. This slowly moves the price of the token higher like we are currently seeing. If the news does take hold and happen this triggers a bull run. Which many expect BTC to hit close to $50,000 when the spot ETF is approved. What they never factor in however is FOMO and just how crazy things get. When you have a trigger event people start to pile into these assets.

A Yellow Flag

Now the part that's very unknown right now is what's going to happen with bitcoin and crypto in general when the US economy hits into a recession. It's expect to hit and hit hard in 2024 with higher inflation, less spending and countless wars going on.

The expense vs income and disposable income for many is going to be dried up so it begs the question if the top riches of people will ape in and buy up droves of bitcoin or will they instead invest into other assets as the housing market cools off and prices fall.

There's a lot of moving factors into this next year and one of the biggest is the first time ever that bitcoin will be seen as another asset during a recession and how it will perform. Will it be a store of value that many thing and maybe usher in a alt coin season come 2025-2026? or will it follow the rest of the markets and come crashing down.

What are you thoughts on bitcoin and the economy in 2024?

Posted Using InLeo Alpha