CryptoComes Original Article
Bitcoin's market capitalization dominance (BTC.D) is an indicator that measures Bitcoin's market capitalization in comparison to the overall crypto segment capitalization. Typically, this is used to track whether the focus of traders' interest is on Bitcoin (BTC) or on altcoins.
DeFi Up, Bitcoin (BTC) Dominance Down
Kelvin 'Spartan Black' Koh, a prominent analyst, Co-Founder of the crypto advisory firm Spartan Group, and a former Goldman Sachs partner, shared his views on the future dominance of Bitcoin (BTC). According to Koh, Bitcoin has no chance of breaking the downtrend that started a year ago.
BTC dominance has been on a steady decline for the past 12 months. I expect this ratio to fall below the Jan 2018 lows (33%) in the current DeFi bull market. We are currently at 59%. Still a long way to go..... pic.twitter.com/fPfADF5sui
— SpartanBlack (@SpartanBlack_1) August 29, 2020
Furthermore, the process of Bitcoin's dominance declining is nowhere near the end. Mr. Koh claims that the ongoing DeFi craze will bring it below the 33% mark. Such an impressive decrease was witnessed on January 2018 after the price of Ethereum (ETH) hit its all-time high (ATH).
With Bitcoin's dominance falling below the psychological level of 60%, Mr. Koh foresees 'a long way to go' for reduction in the flagship cryptocurrency's supremacy.
As previously covered by CryptoComes, it is the 60% mark that is crucial for traders and analysts to indicate the start of an 'altcoin season' or 'altcoin spring'.
BTC.D Has Too Many Reasons to Fall
When asked about the process that could prevent Bitcoin's dominance from recovering, a seasoned expert indicated trading and technological fundamentals. First of all, this seasoned expert predicts a re-rating of the market cap share that are responsible for native assets of DeFi protocols.
New decentralized financial protocols will then launch their tokens. It will also contribute to the decline of BTC.D's ratio.
In terms of technology, the upcoming roll-out of Ethereum 2.0 Beacon Chain may also contribute to the process. Finally, teams outside of the DeFi camp are also preparing exciting products with native tokens.
Previously, CryptoComes recalled an interesting bet between Bitcoin (BTC) maximalist Jimmy Song and ConsenSys' Billy Luedtke with up to $800,000 at stake. Mr. Song claimed that Bitcoin's dominance will be over 75% by the end of 2020.
