The main reason Alt-coins are still stable in price
As we all see there is a strange movement in the crypto market which has taken everyone by surprise, and what's more, the altcoins have not moved so far despite the great price gains of Bitcoin. In every bull run or every bull cycle there comes a moment where people's patience is tested.
To tell you the truth, I myself am worried about this situation and am unable to take any decision. On one side #Bitcoin bull rally continues, on the other hand our coin #HIVE is not going up. Or some other coins that are held are also not moving and the seems like the prices are stable.
This is what makes every investor anxious about what to do in such a situation. Whether to switch to BTC or stay with your coins. In this post I will try to leave some important points and let you friends know what to do in such a situation.
Remember that BTC has dominance that goes up and down. When there is more buying in BTC, its dominance percentage increases and at the same time its price also goes up. But if BTC dominance declines, it means investors are shifting from #BTC to other coins.
Also note that when Dominance is low, the price of BTC remains stable or slowly moves downwards. Now surely the question must have appeared in the minds of many friends that what impact does dominance have on the rate of #Altcoin?
Yes, that is a very good question and it has an answer. BTC Dominance has a lot of implications for altcoins. For example, if BTC dominance increases, it means that investors are buying in BTC or are interested to stay with BTC. And in such a case the Alt-coins will never increase in value but will remain in their position or some coins will even go down in value.
That is because at that time BTC is bullish and people want to make their purchases in BTC and make good profit from it. When investors realize that Bitcoin has run out of potential, they start shifting to altcoins.
As soon as investors start transferring from BTC to altcoins, BTC dominance starts to decline and thus the alt season starts and other coins start to rise in value. And those who are investing in other coins get profit.
That's why it's not a worry if we see that the price of BTC is increasing but the altcoins are stable. I have given the reasons above. Patience is the only way out because soon when BTC dominance comes down the
Alt season will start and there will be a very good rally.
The second reason is that as long as there is good news in BTC, the Alt season will not come. Like buying of blackrock, BTC halving and so on as long as investors understand that BTC is a safe investment. Till now I don't think any such movement will start in Alt coins because everything is in favor of Bitcoin.
That's why every investor should be patient and not sell their coins on impulse. Because Whales and other institutions want to scare away ordinary investors and take their holdings away from them. They want us to panic and sell and they keep buying.
So stay with the holding and don't sell until you book a good profit. This is the crypto game where patience and hard work are tested and every investor who perseveres through tough times will be successful.
This is my attempt to tell you guys about BTC Dominance and also explain the real reason why altcoins haven't gone up in value yet. I hope this post is educational and informative. If you like the post, please leave feedback in the comments section so that the next one will be even better. Thank you for sticking with me until the end.
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REMEMBER: We should prepare for the unexpected and hope for the best. Life may not be easy, but you must do your best and leave the rest to God.
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