Crypto Academy Week 13 | homework post for @imagen | cryptocurrency market | by @loveth01.

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Dominance

dominance simply means a coin controlling other coin. And BTC Dominance (btc.do DOM) is a technical term, understood as the dominance rate of Bitcoin over the rest, More in detail it is the percentage limit that Bitcoin taking into account the total capitalization of the entire cryptocurrency market. This relationship represents Bitcoin's dominance and overwhelming level with other altcoins on the market. There are times when it represents 60-70%, currently fluctuating around 50-55%.

BTC dominance rate is calculated from the bitcoin capitalization of world crypto markets. Hence, the higher the market cap of Bitcoin compared to other altcoins, the higher the dominance rate of BTC. For example, there was a time when Bitcoin's market cap reached $ 9 billion, all other altcoins combined with only $ 1 billion.

BITCOIN DOMINANCE

Overall, BTC Dominance Index show us the level of the demand for Bitcoin in the global market. Many people need to buy Bitcoin HOAc USDT if you want to get involved in the cryptocurrency market and convert from altcoin to Bitcoin to keep your Altcoin capital from decline. Bitcoin's price fluctuates only slightly and holds its long-term value against altcoins. That why BTC Dominance is always high even when the market is bearish or bullish. Also, in terms of data research, when the rise in Dominance BTC percentage also signals a new bull run, it's a sign that financial institutions, whales are entering the market. As huge new money is poured into Bitcoin, altcoin holders are also gradually switching to Bitcoin to prepare for a new rally. And after the bitcoin cycle increases, the money goes back to the bitcoin altcoin again. In the cryptocurrency market, there are usually 4 scenarios that occur, pay attention to this analysis to guide your investment.

The price of Bitcoin has risen and the entire market has risen. This is the most beautiful scenario that everyone wants to see, which means that market confidence increases, big players pour money in bitcoins and altcoin coins.

DROP IN THE BITCOIN THAT AFFECTED OTHER CURRENCIES

Below are instances of times when the bicoin experienced a fall that affected other currencies

1 . The first was in September 2020

During this fall, the Ethereum currency was also affected as it experienced a fall too at the same time range as the bitcoin.

2 . In April 2021, bitcoin also experienced another price drop.

This also was experienced by Ethereum just like during the September fall also, during the time range that bitcoin experienced a drop, Ethereum also had its share of the fall.

WHAT IS AN ALTCOIN

The definition of an alcoin is quite simple, any cryptocurrency other than bitcoin is referred to as an altcoin. The altcoin could be said to share some certain similarities with the altcoin although in some cases they are seen to vary.

ALTCOIN SEASON

The altcoin seaon happens when over 75% of the coins from altcoin perform better than the bitcoin, during altcoin seasons, Bitcoin is likely to to lose some of its dominance in the cryptocurrency market in favor of the altcoins. whenever altcoins are on everyone's lips, this indicates that it is altcoin season.

THE ETHEREUM

Ether is part of the Ethereum network. This network allows users to code and issue 'decentralized applications (dapps)' and create 'smart contracts' - legal contracts written as lines of computer code capable of automatically applying their own clauses. The Ethereum was launched in 2015, and in just a short period of the many financial institutions and technology company became interested in the project. In order to prevent any network hacking attempts, small amounts of ether are destroyed after the transaction is processed. When we want to define the Ethereum, there are two key factors that must be mentioned, these are the smart contract and the ether.
Pros : ether can also be used in other networks, fast transaction speed
Cons : possible inflation

LITECOIN (LTC)

Litecoin is defined as the 'silver' version of the 'gold' version of bitcoin, as claimed by Charlie Lee, the creator of the cryptocurrency in question. However, there are two substantial differences between litecoin and bitcoin: Litecoin Ether (ETH) is mined much faster, thus making transactions faster and cheaper. Furthermore, there are 84 million litecoins available, four times the number of bitcoins. The litecoin was launched in 2011. It is a medium by which people can be paid anywhere in the world without a middle man processing the transactions.
Pros : Fast execution speed
Cons : Lower market capitalization than bitcoin

INFLUENCE OF RELEVANT NEWS ON CRYPTOCURRENCIES

One of the platforms that has the ability to influence an organization strongly is the media, just one news is capable of running down the organization or giving it a rise. This also can be seen in cryptocurrencies, lets take a look at different instances when news affected the rise or fall of a cryptocurrency.

1 . Just recently Elon musk made an appearance on SNL, where he spoke in favour of the dogecoin, this news boosted the rise of the cryptocurrency in no small way.

The area where the red arrow is pointing indicates the rise of dogecoin after Elon Musks interview on SNL.

2 . Another instance is when it was on news that you could buy tesla with dogecoin, this news made many persons to invest in dogecoin (actually who wouldnt like to buy a car like tesla)

Below is the chart of dogecoin after the release of the news above and is indicated by the red arrow

3 . If you follow the news from the crypto world carefully, you must have heard of the news released by coinbase on the dropping of Ripple in january 2019, this news affected the XRP negatively as no one will want to experience any loss due to the drop.

Below we will see the decline of the XRP after the announcement above was made.

SHIBA INU

Shiba Inu, like many of her other ancestors, has appeared almost out of nowhere, and is rocking the markets; her goal, as stated above, is to "defeat" the Doge's coin, also making a reverse to it, as can also be seen from her logo, a decidedly angry dog. The phenomenon has spread rapidly in the past few hours, to the point that on Google it is one of the most sought after topics today, and several American influencers are also sponsoring it, obviously increasing its value. It was named after a dog breed, the shiba inu trades as SHIBA, it also parades itself as dogecoin killer, this cryptocurrency was recently added to the trading platform and its coin has almost no value.

Thank you professor @imagen this is my homework post.