With the markets still suffering in the wake of the United States Securities and Exchange Commission (SEC) decision to delay their Bitcoin ETF announcement, we want to turn to the current standings to assess what could happen over the next few weeks. We must bear in mind that during September, a number of ETF announcements are due to be made, meaning that what we have seen this week could be amplified on a massive scale through September, or, September could well see the start of a number of bull runs, encouraged by a positive ETF announcement, or nine.
Please note that this is not investment advice, cryptocurrency investment is risky business and nobody can ever predict how the markets will perform. As values can fly, they can crash too so don’t base your investment decisions on this article. Yes, use it to enhance your research, but decisions should be made on your own terms. Success can only be found in trading safe.
So, at the time of writing, Bitcoin dominance stands at 49%. This means that almost 50% of the total market capitalisation for all cryptocurrencies exists within Bitcoin. Bitcoin has a very strong grip on the markets at the moment. Now, we must consider that the last time Bitcoin dominance climbed at the rate we are seeing, we concluded with a bull run that took Bitcoin to $20,000.00. I’m not saying the 49% dominance of now will make that happen again any time soon, but, high dominance is a good indication that something positive could happen.
If, this does happen, part of Bitcoins dominance means that it will lead the markets too. So, when Bitcoin starts to climb, so will Ethereum, XRP, Bitcoin Cash, EOS, Stellar etc. If this happens, a sudden rise here and there will take hold, pushing values up and inspiring new investment. The final outcome?
A bull run.
We could well see Bitcoin reach $20,000.00 off the back of its new surge in dominance, though as I have stated this can’t be guaranteed. One thing we do know for sure though, Bitcoin does have a great deal of power right now. One positive ETF decision might be all the markets need to take off. This could be the small spark the markets need to start a real fire in order to take a leap back up to those all time highs that many so sorely miss.