In the bull market from September to December 2017, Bitcoin occupied a 66 percent share of the total cryptocurrency market cap at its max. The drastic change came in the starting of the year.
During that same period (September-December, 2018), Bitcoin has occupied over 50 percent of the market cap for cryptocurrencies and reached its maximum market share of 66 percent on Dec. 7, 2018. Till last year altcoins were also showing great results and the investors were getting to much profit, therefore, the investors have invested in it with interest.
Bitcoin is down 58 percent from its December high, and altcoins with smaller market caps, like Ripple, are down over 100 percent in some cases. It’s possible that once the crypto market took a turn from the all-time highs of December to a seven-month bear market in 2018, investors began taking their funds out of altcoins that were losing money and investing that money into Bitcoin — a relatively less volatility investment.
“When Bitcoin is in the bullish trend again, we expect the dominance will continue to decline because of the arrival of new coins with support from financial groups and — as already mentioned — reallocation of savings from Bitcoin back to existing projects. This process is natural. You can see that back in 2016, Bitcoin’s dominance was around 85-90 percent and basically, the total market was represented by Bitcoin. But then the boom happened and lots of new projects appeared on the market, and they attracted attention from investors. Money started to flow from Bitcoin to altcoins, causing a decline in Bitcoin’s dominance.”