Basics: BTC & Altcoin Price Movement Explained
Bitcoin and Altcoin prices are very much correlated to the Global Market Capacity of Cryptocurrency. In order to anticipate price movement and to understand the basic workings of these correlations, I created an easy-to-read table of explaining the process.
What is Global Market Capacity
Global Market Capacity is the total amount of fiat money (EUR, GBP, USD, Yen etc.) that is currently invested in the cryptocurrency market.The current state of the Global Market Capacity can be found on websites such as www.coinmarketcap.com
What is Bitcoin Dominance
Bitcoin dominance is an indicator, expressed in percentages, on how much market share belongs to Bitcoin is in the overall Global Market Capacity. Bitcoin dominance basically measures the market capacity of Bitcoin against the market capacity of all other cryptocurrency coins. Again, the chart for this can be found on www.coinmarketcap.com.
Note: as you can see in the chart, Bitcoin dominance has been decreasing as more and more Altcoins enter the market.
Correlation between the Global Market Capacity and BTC / Altcoin prices