Blockstream CEO Adam Back claims that bitcoin is reverting to its mean in market dominance, which will take the asset’s share back to 90% of the total market capitalization of cryptoassets.
According to Back, bitcoin is gaining ground in market dominance at the expense of altcoins, leading to price depression for the latter. The CEO made his comments in reply to a tweet from Primitive Fund co-founder Dovey Wan, who was questioning the decoupling of bitcoin’s price from altcoins.
It's a reversion to mean: bitcoin dominance The whole thing lasts about 2.5years https://t.co/ECBwYHIhp6— Adam Back (@adam3us) September 10, 2019
In August, Back published a tweet supporting the idea that bitcoin has experienced a transient dip in market dominance over the last 2.5 years, which will correct to 90% or more as the currency reverts to its means.
Dominance index history is quite short - only really dipped below 95% from Feb 2017, and below 98% from Jun 2016, prior 99%. Reverting back to 90%? pic.twitter.com/pwXrz3NJxG— Adam Back (@adam3us) August 16, 2019
Other crypto analysts have been equally skeptical of altcoins gaining market dominance on bitcoin, including industry veterans Max Keiser and Peter Brandt.
Alts never coming back... Sorry. pic.twitter.com/QNAn8g0ae4— Max Keiser, tweet poet. (@maxkeiser) September 2, 2019
When will altcoin junkies understand that $BTC is the crypto with real and lasting value. Altcoins are to Bitcoin what lead is to Gold @KimDotcom pic.twitter.com/ezePnyeSxg— Peter Brandt (@PeterLBrandt) September 2, 2019
While BTC market dominance dropped to a relative low of 33% in early 2018, bitcoin has continued to gain market share throughout the year and is hovering just under 70%.
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