Bitcoin Dominance: The Final Rotation Continues

Summary

The video explains the ongoing ‘final rotation’ toward Bitcoin, arguing Bitcoin dominance has been rising for six weeks and formed a higher low the week of September 8. The host highlights a recent breach and wick above 60% dominance and warns that the next sustained breach could trigger a rapid move higher. Performance depends on ETH/BTC valuation, but altcoin pairs have been bleeding versus Bitcoin — a pattern the presenter has seen before. He criticizes influencers who shill micro-cap alts and urges viewers to adopt a Bitcoin-first mindset for October, mentions speaking at the Amsterdam Bitcoin conference, and plugs his premium site.

Takeaways

• 😀 Bitcoin dominance has been on the rise for six consecutive weeks, with a recent low formed during the week of September 8th.
• 😀 The final rotation in Bitcoin dominance that has been discussed for months is now in progress, albeit at a slower pace than many expected.
• 😀 Bitcoin dominance breached 60% recently, showing strong movement upward, which some market participants weren't ready to accept.
• 😀 Dominance could continue to rise depending on how low Ethereum (ETH) falls against Bitcoin (BTC). ETH/BTC's performance is key to Bitcoin dominance's future direction.
• 😀 Even though Bitcoin dominance could rise higher, it's important to remain open-minded to the possibility of it fluctuating back to previous highs.
• 😀 Influencers and critics who dismissed Bitcoin dominance are often the same ones who become emotional when proven wrong, reflecting the volatility of the crypto space.
• 😀 The crypto market has a tendency to punish altcoins, with many alt-Bitcoin pairs dropping in value while Bitcoin's dominance increases.
• 😀 The market cycle often leads to disappointment for altcoin investors, but Bitcoin is the ultimate measure of value in the cryptoverse.
• 😀 Timing is crucial when investing in altcoins, as opposed to long-term investments like Bitcoin or traditional assets like S&P index funds.
• 😀 Altcoins may need an 'altseason' to recover, but many investors will still require significant growth just to break even in terms of Satoshi valuation.
• 😀 The crypto market will continue to see new altcoins emerge daily, but Bitcoin remains the only true store of value that can withstand long-term challenges.

Q & A

What is Bitcoin dominance and why is it important in the context of the video?

Bitcoin dominance refers to the percentage of the total cryptocurrency market capitalization that is made up of Bitcoin. It is important because it reflects Bitcoin's market share compared to altcoins. In the video, the speaker emphasizes Bitcoin dominance as a key indicator of market trends and predicts that Bitcoin's dominance will continue to rise, affecting altcoin valuations.

What does the speaker mean by 'the final rotation'?

The 'final rotation' refers to a market cycle where Bitcoin dominance is expected to increase significantly at the expense of altcoins. The speaker has been forecasting this shift for the past few months, suggesting that Bitcoin will outperform altcoins in the coming period.

Why does the speaker believe Bitcoin dominance will rise?

The speaker argues that Bitcoin dominance will rise because of a series of market cycles where altcoins consistently lose value against Bitcoin. They point to historical trends and recent events, such as the breach of the 60% dominance level, as indicators that Bitcoin dominance is set to increase.

How does the speaker feel about critics who claim Bitcoin dominance won't rise?

The speaker is frustrated with critics, particularly influencers who oppose the idea of rising Bitcoin dominance. They argue that these critics often promote altcoins despite historical trends showing that altcoins tend to underperform compared to Bitcoin, and they get emotional when proven wrong.

What is the significance of the 60% Bitcoin dominance level?

The 60% level is seen as a key threshold for Bitcoin dominance. The speaker notes that once Bitcoin dominance breaches 60%, it is expected to surge higher. This level has been breached in the past, and the speaker believes it will continue to act as a catalyst for further dominance growth.

Why does the speaker emphasize timing when investing in altcoins?

The speaker stresses that timing is crucial for altcoin investments because, unlike index funds where time in the market matters more than timing the market, altcoins behave more like penny stocks. Investors need to carefully time their entries and exits to avoid long-term losses as altcoins often bleed value against Bitcoin.

What is the speaker’s stance on the altcoin market?

The speaker believes that the altcoin market often leads to losses for many investors. They caution that altcoins, especially those with low market caps, are often compared to penny stocks and may not offer sustainable returns. The speaker’s focus is on Bitcoin, which they view as the core asset in the cryptocurrency space.

What role does Ethereum (ETH) play in the discussion about Bitcoin dominance?

Ethereum is mentioned in relation to its pairing with Bitcoin (ETH/BTC). The speaker highlights that the performance of ETH against Bitcoin is a key factor in determining Bitcoin dominance. If ETH/BTC continues to form lower lows, it supports the idea that Bitcoin dominance will rise, though the exact dynamics will depend on ETH's performance against Bitcoin.

What advice does the speaker give to viewers who are investing in altcoins?

The speaker advises viewers to be mindful of the risks of investing in altcoins, as they often underperform relative to Bitcoin. They recommend focusing on Bitcoin, especially when Bitcoin dominance is expected to rise. The speaker stresses the importance of learning from past cycles and avoiding the same mistakes.

How does the speaker differentiate between Bitcoin and altcoins in terms of investment risk?

The speaker differentiates Bitcoin from altcoins by describing Bitcoin as a relatively safer investment with long-term growth potential, while altcoins are riskier due to their volatility and tendency to lose value against Bitcoin. Bitcoin is seen as the 'king' of the crypto market, while altcoins are more speculative investments that may not survive in the long term.