This is the cryptocurrency market cap, which, in total is going down theres, even a chance that youve seen a modified version of this. This is total three, so this is cryptocurrencys market cap, minus bitcoins, market cap and minus ethereums market cap, but a chart that youve probably not seen yet is total three divided by bitcoins market cap. So how is the altcoin market doing relative to bitcoin during this crash, and this is very very interesting right when we look at this since the 12th of june, we have seen an outperformance of the altcoins versus bitcoin of 22. Now. Why is that so interesting? Because bitcoin went down during this time right quite massively, we are now at 20.9 k. Bitcoin fell by 27 roughly, and one might expect that the alt coins they tend to move more right. So when prices tend to go up, the alt coins should gain more. When prices tend to fall, the alt coins should lose more but thats, not what we are saying. We see an impressive drop in bitcoin and an impressive drop in the alts, but the alts still outperform bitcoin the alts fall less and now. The big question is: why is that the case? Have we seen something like this before and theres a lot of speculation around the? Why right so, for example, one might argue – we have already seen quite a destruction in capital for the alls right. So when we look at the top here on the 8th of november 2021, all the way to today the altcoin market cap went down by 67.

The prices of those altcoins tended to go down even more right, because altcoins tend to be inflationary in nature. So even the market cap went down only by 67. Chances are that your individual altcoin portfolio is maybe down by 80 or 85. So one argument might be okay when were already down that much now it doesnt even worth it anymore, to sell. Another argument is that over the long term, people might still be somewhat bullish or in other words retail hasnt capitulated lit. So ive made different surveys over here on youtube and recently so just four hours ago, i asked how long will bitcoin fall? Where do you see? Will be the bottom when does it finally recover and 20 think weve already seen the low more people think we might fall further to maybe 15k or 10k, but whats most interesting around this survey is most people do not think that bitcoin in itself has failed that It will never recover and thats. I think an interesting takeaway here right, most people think crypto is still intact. Bitcoin or crypto will not go to zero, so its just a matter of time until everything recovers. This is pretty different to the 2018 crash to the crypto winter. A lot of people at that time thought that the market wont recover at all anymore thats, not just a temporary crash, but that the technology in itself has failed. That adoption has failed. That is just a fad, basically thats.

Currently not the sentiment at all 94 of people. Think bitcoin is just temporarily in a bottom and that it will recover, and that might explain why people dont necessarily feel inclined to sell at low levels like this. Now there is a cautionary tale, though, and this is how actually the crypto winter in 2018 started. So this is again the bitcoin chart and lets look at when exactly that top happened, so the highest price was on the 16th of december of 2017.. That was for bitcoin now what happened for the altcoins? When did they see their peak? For that lets? Look again at the total cryptocurrency market cap go all the way back to 2017, and the peak that we find over here is on the 7th of january 2018.. So, roughly three weeks after bitcoin peaked thats when the altcoins peaked, so there was a delay happening. First, people got cautious of bitcoin and even though the alts tend to be more risky, they crashed afterwards. Now will this happen again now that bitcoin has underperformed the alts in those last five days? Maybe right it depends on whether or not retail will capitulate and whether or not people still believe in their specific altcoin project over the long term. Now i dont have an answer to this right. I simply present the data here. I simply find it interesting to see whats going on. I also find it interesting to compare this simply to what happened in the past, and i dont know if this will go down again if the alt coins are going to crash, at least in a similar fashion, to how bitcoin has crashed historically, what happened is when Bitcoin was in the winter that the altcoins went down more right, so lets look at the development of the overall crypto winter from the top over here for bitcoin all the way to the bottom.

We see a loss of 83 roughly when we look at ethereum. For example, during the same time period ethereum went down by 94.. What about cardano cardano was also a high flyer. During the time cardano went down by 98 percent, almost so thats. What happened historically, historically bitcoin outperformed during bearish times during this initial crash here. Thats. Definitely not the case. So what can we do with this data? It depends on how you see the current market environment right if you do think that bitcoin is going to recover from here, because one other interesting data point is the stable coin dominance. So this is now a measure of the overall cryptocurrency market cap thats, currently in tether in die and in usdc, so were looking here at three major stable coins and on the y axis over here. Weve got a measure in percent, so currently, 15.2 percent of all of crypto is locked up in those three stable coins and we can see over the long term. This is increasing, which does make sense right. More and more people are actively speculating on crypto theyre, not just buying and holding so an increased adoption of stable coins makes sense. We can also see a waveform building over here right. Sometimes the stable condominius is high, sometimes its low, currently its as high, as has ever been so its really really high. So when we look at these prior peaks right, for example, here on the 20th of july 2021, when we compare this to lets, say the total cryptocurrency market cap, how did it look on the 20th of july? This is what we are getting a very low point.

So when stablecoin dominance is high, the prices of all of crypto tend to be low and vice versa. So lets look at this right. Lets. Look at the other side, so stablecoin dominance is pretty low. On the 8th of november 2021, the 8th of november was a high point over here and the total cryptocurrency market cap. So the question is: do you believe that this trend here will continue as in? Are we now that elevated in stablecoin dominance that we could potentially go down here, which would then mean that the cryptocurrency prices go up, which would then indicate that we might have already seen the bottom for bitcoin for ethereum for the old coins? Nobody knows this for sure, of course, right, but its simply interesting to see different perspectives and to maybe adjust dollar cost averaging in and dollar cost averaging out based on different models. This video is simply to provide more data to help your decision making process. I make videos like this regularly, so dont forget to subscribe. A like, of course, would be appreciated as well. It will help the channel grow and, if you havent yet joined our telegram group feel free to simply search for bitcoin strategy channel within the telegram app. There are more than 2 000 people over there now last but not least, theres a premium membership.

https://www.youtube.com/watch?v=26MfxWeIc0k