An impressive Bitcoin price surge of 150% since April 1 has led a general rally in cryptocurrencies this year.
But Bitcoin has far outpaced the gains of its fellow cryptos, making it the most dominant it's been since March 2017.
I'm talking about Bitcoin's portion of the total market value of all cryptocurrencies.
Last week, it rose as high as 71%, a big jump since April when it was about 50%.
And it's more than twice where it was in January of 2018, when Bitcoin dominance had slipped to 33%.
If you think of all cryptocurrencies as a big pie, the size of the Bitcoin slice has been growing while just about all the other slices have been shrinking…
Altcoins Haven't Matched the Bitcoin Price Surge
Many cryptocurrencies have risen in value since April 1, but not nearly as much as the Bitcoin price. Ethereum is up 27.65% and Litecoin is up 16.4%. But some have actually declined, with XRP down 16.4% and EOS down 9.5%.
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Over the past three months, the trend has been even more pronounced, with the price of Bitcoin rising 31.4%, while other top altcoins took heavy losses:
- Ethereum: -25.3%
- XRP: -33%
- Bitcoin Cash: -22.65%
- Litecoin: -44.5%
- EOS: -39%
Some in the crypto community have dismissed the Bitcoin dominance metric. But the reality is that many folks who jumped into altcoins during the ICO craze, thinking they'd duplicate the stratospheric gains of early Bitcoin investors, have lost 70%, 80% – even 90% – of their money.
What appears to be happening is that a rising number of altcoin investors are throwing in the towel as Bitcoin consolidates its gains.
But nothing is that easy in the world of crypto…
Bitcoin Dominance Vs. Altcoin Season
While some observers believe the decline in altcoins is permanent, others see the bottoming of a cycle that will lead to what's known as "alt season" – a resurgence in the prices of altcoins.
Defenders of altcoins believe current prices are a bargain and that buyers now will be rewarded handsomely, with some suggesting 1,000% gains. Many, though not all, also think Bitcoin will lose relevance until it is overtaken by other cryptocurrencies.
At the other extreme are the so-called "Bitcoin maximalists" who say that altcoins are dying and that Bitcoin dominance will only increase.
About the Author
Dave has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.