RE: Why I'll Sell Bitcoin if it Reaches $17,000 Soon

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Why I'll Sell Bitcoin if it Reaches $17,000 Soon

in bitcoin •  7 years ago 

Could you explain the correlation between Bitcoin dominance and the timing to invest in altcoins?

I don't fully understand why it's more favourable to invest in altcoins when Bitcoin's dominance is 50%+ (in your opinion).

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It's simple - when Bitcoin's dominance is higher, altcoins have moved out of favor. When they go out of favor, there is more room for them to increase when they come back into favor. It's just another way of saying 'buy low, sell high' except instead of comparing altcoins relative to USD, we are comparing it to Bitcoin.

I think by the end of this entire fiasco, bitcoin (core) will hold 25-30% of the entire cryptocurrency market. This will not happen for probably another year or two though.

Have you seen any well-documented empirical evidence for this inverse correlation? I hear it often so I'm sure it has at least some merit, but I'd like to see some concrete data supporting it.

The past couple of months, I have often (but not always) witnessed Ripple (XRP) and DASH, being inversely correlated to BTC in terms of price. DASH often holds, or even grows when BTC falls. Except the recent correction this past week, where only Ripple held close on to its recent gains.