Because of the hype around the US election in the past months, interest in digital currencies is exploding with millions of new entrants into the market.
What one would
expect in this situation is for Bitcoin to
gain market share, as newbies tend to only know about the market leader at first. But that's not what is happening. Instead, Bitcoin's overall market share is
dropping. As I discussed in another thread, Bitcoin now sits on a "store shelf" alongside thousands of other products today who all compete for the same exact investor dollars.
What is driving this? Most investors use an app of some kind to invest in Bitcoin. These apps display Bitcoin
alongside many other choices as equals. And like the shelves at your local grocery store, the arrangement of those items will depend on
what makes the broker the most money and that can be driven by the product's backers who can share the wealth (and Bitcoin has no such backers).
This is very, very bearish for Bitcoin (and bullish for non-Bitcoin digital currencies).
Honestly, you are wrong bud, in the previous market cycles, after the rise of bitcoin, which usually also increases the market dominance of bitcoin, a time comes when bitcoin takes a rest, when this time comes, money begins to shift from bitcoin to some major Altcoins which is what we usually refer to as altseason, where Altcoins begins to rise, while the price of bitcoin remains relatively stable or decline a bit, this is a normal market process which we all should by now be familiar with.
The fact that Bitcoin is losing its market dominance level does not mean it's bearish, a price correction is not the same as bearish market condition, a correction is a healthy process every cryptocurrency goes through to create room and strength for more rises in coming days or weeks.
And about newbies first investing in bitcoin, this is also not generally true, many newbies prefer to buy Altcoins, since most of them usually assume bitcoin to already be too expensive - I know this because I was there myself.
