Bitcoin has been facing off against altcoins as people shift their funds from "useless" Bitcoin into altcoins they perceive as useful (which are often useless as well). In my last video, I mentioned 3 potential catalysts that could cause this money to shift back into Bitcoin:
Hard fork with a lot of hype
Lightning Network which changes narrative from "Bitcoin is slow and useless, hence will die" to "Altcoins only advantage, speed and affordability, just was erased and Bitcoin already has the brand and business support." Even if it DOESN'T end up being true, the average crypto investor will likely feel this way.
Signs that more institutional investors will jump on board, such as news on additional derivatives and ETFs
Once eyes shift back onto Bitcoin, I suspect its market dominance will increase from its current level all the way up to 50% again. At the current cryptocurrency market cap, that would put Bitcoin at $23,000.
This is a fairly rudimentary and optimistic analysis. The last time we saw Bitcoin dominance fall this low was because of the threat of the Flippening (Ethereum taking over Bitcoin in market cap). When this occurred, Bitcoin recovered its dominance through a cryptocurrency selloff rather than a boom back in July (see video). While Bitcoin sold off from $2,650 to $1,900, its dominance soared from 37% to 50%.
Why did this happen? Because of "flight to safety" - as insane as it is due to its volatility, Bitcoin is actually the "safe" asset in this crazy market. It's also a quality asset as it has had a long track record along with huge community and developer support. What followed everyone is aware of: The crypto market went boom and Bitcoin retained its 45 - 55% market dominance for a while.
However, from October to December, Bitcoin had a crazy bull run which shifted dominance up to above 60%. Just last month, Bitcoin's dominance reached 65%. Yet everyone is certain that dominance will continue to tank due to being at an all-time low. I disagree with this assessment and believe a recovery to 50% (which Bitcoin has tended to hover around over past few months since the altcoin boom last year) is in the cards soon.
Even in the event that the market goes down, Bitcoin remains a safer option than other cryptocurrencies. For the record, this means I am NOT selling Bitcoin at $17k anymore. In the event of a continued cryptocurrency bull run, Bitcoin is well positioned against other cryptocurrencies and could easily see $20k+ soon. What are your thoughts?