We are seeing Bitcoin market dominance starting to go up as of late. Altcoins on average has a negative correlation to Bitcoin. So if Bitcoin dominance goes up, less money is streaming into Altcoins thus reducing the demand and since the supply side is unchanged, this will mean a relative price drop on average in relation to Bitcoin, meaning Bitcoin will be the better investment percentage wise.
My view is that we will see cheaper Altcoins measured in Bitcoin going forward until the Bitcoin dominance tops out next time. This leads to the conclusion to allocate more capital into Bitcoin and the few others that correlate with Bitcoin. When we see the top in Bitcoin dominance it will be time to allocate more capital into some solid Altcoins.
There are a few Altcoins that has some correlation with Bitcoin. Neo has been following Bitcoin up lately in dominance whereas before Neo did follow Altcoins. Monero has a tendency to increase its market share when Bitcoin dominance goes up and the recent uptick is in line with that conclusion. Ethereum, another major crypto, still has a negative correlation to Bitcoin, most likely due to its direct link to ICOs being a platform. Bitcoin Cash has an unclear correlation this far. Litecoin has a very slight positive correlation with Bitcoin and Ripple dominance has had negative correlation but during 2018 Ripples market share has been less negativ to neutral.
