From the above Bitcoin dominance chart, we can see that in 2013, Bitcoin had a market dominance of 94%. ERC-20 tokens didn’t exist back then, Ethereum, stablecoins, USDT didn’t even exist then too. Fast forward to 2017, the altcoin season began.

In Feb 2017, Bitcoin dominance was 85.4% whereas Ethereum was $5.7%. However, within 4 short months, Bitcoin dominance drop to just 40%. Bitcoin prices then crashed after the legendary first bull run in 2017 before going to a Bitcoin’s dominance at time low of 32.8%.

Bitcoin metric usefulness

Hence, BTC dominance only give you a part of the picture of the whole story. It can tell you a gentle idea of how much of your capital you should allocate to altcoins as compared to ETH/BTC but it is not the full picture.

Do also bear in mind that the Crypto market CAP is only 1 trillion as compared to other asset classes. How high will BTC/ETH goes and will BTC dominance goes below ETH in future? Your guess will be as good as mine. But I am optimistic about Crypto in the long term.

Forecast of Bitcoin price in both short and long term

Let me make a bold forecast on bitcoin price in the short term. We have a solar eclipse on 25 October and solar eclipse are usually bad for crypto markets.

Hence, I stick my neck out and forecast that the price of bitcoin will be very bearish after the eclipse and hence I will be doing shorting for bitcoin. However, over the long term especially after 2024 onwards bitcoin will be up up and away!

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