I think it is no secret to everybody that Bitcoin and Altcoins (including ETH) are very much correlated. But they do have a certain lag in impulses.
On the chart you can see altcoin market cap vs Bitcoin market cap (High values). As you can cee, Bitcoin had a new All time high which is ~53% higher than the previous one, while altcoins didn't manage to break the Total market cap ATH. But percentages are not the only thing interesting to us. We are also interested in the dollar delta between them and which one is higher.
We only have two major bullish cycles to analyze, therefore any conclusions made frome them may not guarantee that next bull run will be similar.
First thing I could notice is that capital flows as follows: new money coming into market first boosts bitcoin and when it goes into its parabolic growth state, Bitcoin market cap is higher than that of Altcoins. And as you can see on the chart, when altoin market cap surpasses bitcoin, it means that most likely that capital inflow into crypto slows down. And most likely it signals near beginning of an overall bear market. I think we should closely monitor this and be ready to start selling when the two lines close once again.
Another point of view is the next ATH for both bitcoin and Atlcoins. As I predict in
, for bitcoin the next ATH will be around 115-200k and therefore mcap will reach around 3-4 trln. This means that ATH for altcoin mcap will be around 4-5 trln and be ready when BTC.D becomes lower than 50%.
Let's see how this turns out. And by the way total mcap doesn't define each altcoin growth so each coin needs to be analyzed separately.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.