Bitcoin fell to the $9100 level, and the Market Cap of all crypto assets fell below $26 billion. On the other hand, BTC Dominance has risen to 64.4%. Looking at the trends in Market Cap and BTC Dominance over the past month (chart left), there is a negative correlation. You have to be careful with such apparent correlation charts, however. If the same graph is stretched over the past year (chart right), the first half of 2019 appears to be positively correlated.
The hidden story is as follows: Altcoin prices were generally flat in the first half of 2019, and since bitcoin’s rise was the main reason for Market Cap’s rise, BTC dominance also rose. Conversely, the recent month has been relatively stable for Bitcoin and Altcoin has been the mainstay of market volatility, so it looks like an inverse correlation.
Since the differences between these aspects will change in various external environments, it is impossible to predict how the two variables will change in the future. Both Market Cap and Dominance seem to be back to where they were a month ago, but which will be the primary driver of the next market movement, and which direction will it take?