I've been following Bitcoin's market dominance for a while now. And before the current bullish trend, it used to decrease as the market was growing. I even noticed the correlation between the prices going up and the dominance going down and vice versa. Take a look at this interesting chart:
https://coinmarketcap.com/charts/#dominance-percentage. Specifically, at what happened at the end of 2017. Bitcoin's price sky-rocketed, but so did the prices of altcoins. They were kind of fueling each other and thriving. Bitcoin going up coincided with the market of cryptocurrencies expanding, and alts taking up a bigger and bigger part of it. BTC dominance went almost as low as 30% back then.
When the prices started going down, Bitcoin's dominance was growing. People were selling their cryptos a lot, but some of them were selling altcoins for Bitcoin, so it actually lost less than others. When the prices started to go up in April, I thought that 2017 would repeat itself with Bitcoin giving more space for other coins as the market recovers. Instead, what we see is Bitcoin recovering at the expense of altcoins with market dominance now being above 60%.
What do you think about this phenomenon? Is the time of altcoins over, or is it just temporary?
It isn't just you alone. I have also observed it and I frankly think it is dangerously precarious. The dominance isn't healthy at all and this has perpetually kept the prices if altcoins down despite the bull run experienced with Bitcoin lately. Traders and investors still don't want to trust an investment with altcoins owing to that sad experience of 2018 where some of the altcoins ended up as scams. Nobody wants to invest in scam and shitty coins. They would rather invest in Bitcoin and this is keeping Bitcoin dominance on a steady rise.