BITCOIN back over 60% in market dominance.

Well, well, well, looks like we're witnessing the burst of the Ethereum/ERC-20 tokens bubble.

Take a look at this chart.

• Ethereum and Bitcoin have been inversely correlated since the beginning of January;

• Last June, Bitcoin's market dominance plummeted below 40% while Ethereum's rocketed up to 31%, fueled by exuberant bullishness, greed and irrational hype for ERC-20 tokens;

• Bitcoin is now "bouncing" back up to re-assert its dominance over the market;

• Meanwhile the overall altcoin market is looking bearish and has produced what could be its first lower high:

credit to @imrane for bringing this chart to my attention

My analysis :

• Ethereum has lost lots of its appeal for day-traders and greedy new money because ICO have become lackluster opportunities for making a quick buck;

• Nevertheless, the market is still flooded with illiquid ERC-20 tokens, most of which are being dumped for BTC by disenchanted investors;

• I believe next year will see market sentiment shifts towards yet another cryptocurrency (EOS? ETP? NEO? something else?) as most Ethereum-based projects will go bust and start to cash out their ill-acquired ETH on the market, potentially triggering a wash out and flat-lining most ERC-20 tokens;

• Only very few Ethereum-based tokens will survive this market cycle, i.e the ones that have engineered a good product which truly benefit from a token economy (and very few have).

Folks, we might just be at the very start of a new, exciting market cycle.

As always, follow, re-steem and upvote if you like what you see

#cryptocurrency #bitcoin #ethereum #steem

Dan @tradealert