Bitcoins’ price crashed below $40k within few months of touching its all-time high of above $64k this year, due to which every other altcoin was affected, many crashing more than 50%, disappointing many traders who wanted to make quick bucks.
But JPMorgan has predicted the upcoming bull run or the end of the current bear market, indicating a perfect time to invest in cryptocurrencies.
According to analysts at JPMorgan, all you need to do is track Bitcoin’s dominance in the whole cryptocurrency space.
The Bitcoin bear market would be over when its market dominance rises above 50%, said the lead analyst at JPMorgan.
“A healthy number there in terms of the share of Bitcoin as a percentage of the total cryptocurrency market-cap at 50 percent or above. I think that’s another indicator to watch in terms of whether this bear phase is over or not,” said Nikolaos Panigirtzoglou of JPMorgan.in an interview with CNBC.
The market dominance of any coin is the percentage of the total market cap of all cryptocurrencies, currently, the market dominance of bitcoin is 44.7 percent.
Bitcoin’s bull run will commence as soon as the coin’s market dominance rises above 50% and it was around 60% when Bitcoin’s was trading premium.
Bitcoin dominance below 50% is a negative sign of subdued interest in the digital currency but the dominance has risen in recent weeks, said Panigirtzoglou.
Analysts have seen a rising demand for Bitcoin and Ethereum in recent weeks, more traders are going for Bitcoin than Ethereum.
But for the market dominance to rise above 50%, there are two ways, first, if there is a rally in Bitcoin price or a massive sell-off of altcoins.
Anyways Bitcoin is showing positive signs for a possible bull run late this year according to many analysts.
With the rise of Bitcoin, the altcoin will also gain potentially which is a surprising pattern but Bitcoin being “The Kardashian” of cryptocurrency has a huge influence over every altcoin.