The post Real Bitcoin (BTC) dominance falls against other proof-of-work coins appeared on BitcoinEthereumNews.com.

A new metric shows Bitcoin (BTC) is taking a step back against a basket of other proof-of-work coins and tokens. The direction of the Bitcoin dominance metric may signal both a market peak and the ability of altcoins to outperform.   The real Bitcoin dominance metric is a new metric introduced to measure BTC against a basket of mined coins. The metric excludes ICO tokens and other assets, removing the distortion of the tokenized economy. The index also excludes stablecoins, which do not reflect the true value of other coins. Removing the stablecoin supply and random outperforming tokens serves to give a clearer index of the direction of BTC and the rest of the market. The true BTC dominance index reflects a shift in direction. BTC dominance is measured against mined coins, excluding stablecoins and tokens. | Source: Bitbo The Bitbo index includes some legacy coins, which aim to be hard or deflationary money. BTC usually has a higher dominance against this group of assets. However, it also sends a clear signal when shifting direction.  The basket of hard money coins and tokens, most of which use a form of mining, include LTC, BSV, BCH, XMR, DASH, ZEC, BTG, ETC, DCR, XRP, SOL, and TRX. The list also counts Ethereum (ETH), despite it no longer being mined. While inexact, the true BTC dominance index is yet another tool for gauging the BTC price cycle.  The metric showed the peak of BTC dominance around November 20, following a month-long expansion. Peak BTC dominance is seen as the signal for an upcoming altcoin market, as funds seek out more active gains.  This time around, the real BTC dominance shrank from a peak above 74% down to 69.7%. At the same time, the index drew attention to other mined coins and tokens, which attempted…

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Filed under: News - @ December 13, 2024 12:20 pm