BTC Dominance - First Potential Higher High in Years

BTC dominance at 45% and broke above the multi-year downtrend with a higher high for the first time since 2019 but will see if it can close at this level on the weekly to confirm; this typically precedes recovery to bull in time.

Of note, this was the first cycle where the majority of time in the bear market Bitcoin dominance continued to trend down. This indicates the growing strength and stickiness of altcoins in 2021/2022. In earlier cycles (say 2018) altcoins were ICO vaporware, most might promise the world but had no functional utility.

Today DEFI and NFTs are only two parts of a very active altcoin ecosystem used by thousands daily. Over time I expect Bitcoin to struggle to regain the massive market dominance it once would display in bear markets.

This may lead to more investment opportunities as it suggests an increasing amount of money is pouring into altcoin projects and I expect most meaningful projects to outperform Bitcoin in bull markets. That said, Bitcoin is the most consistent and least volatile among a volatile asset class and still rates a high level of inclusion in your investments.