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Bitcoin Dominance Could Soar to 90% amid Economic Crisis, Crashing Altcoin Market

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Bitcoin Dominance Could Soar to 90% amid Economic Crisis, Crashing Altcoin Market

More and more traders would Bitcoin Dominance inching higher as economic crisis looms | Source: TradingView.comBitcoin’s market capitalization, on the other hand, plunged from $189 billion to $121 billion within the same timeframe. It shows that cash remained an indisputable hedge against the worsening macroeconomic sentiment, further validated by the upside bias of the US Dollar Currency Index (Ticker: DXY). It was up 5.83 percent from its YTD low at the time of this writing.Haven Sentiment UpFollowing the US government’s $2 trillion coronavirus relief package, DXY has plunged by up to 2.86 percent. At the same time, bitcoin is up by a modest 1.94 percent.The upside move has followed a bullish narrative that projects the cryptocurrency as a deflationary alternative to an open-ended dollar supply system. As central banks and governments introduce major stimulus programs to safeguard their economies from Coronavirus-induced crisis, some top analysts believe part of the free cash would make its way into the bitcoin market.A major bank making the $btc case.— Michael Novogratz (@novogratz) March 18, 2020As for altcoins, they are most likely to feel sidelined as investors feel the real market pressure in the coming weeks or months. While bitcoin could feel the same owing to higher cash demand, its likelihood of stealing capital from the altcoin market seems higher owing to its relatively lower volatility and higher liquidity.Take advantage of the trading opportunities with Plus500. Risk disclaimer: 76.4% of retail CFD accounts lose money.

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Author: Yashu Gola

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