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- Bitcoin’s dominance shows an upward trajectory, which Mow anticipates will go beyond past projections from late 2024.
- Unit bias makes investors purchase cheap alternative coins at inflated prices while simultaneously skewing market value perceptions.
- The market share of Bitcoin has surpassed initial predictions, while Mow predicts additional dominance growth.
The Jan3 CEO, Samson Mow, predicts that Bitcoin will sustain its ongoing dominance within the market. According to his analysis, Bitcoin is expected to achieve market dominance surpassing what many cryptocurrency analysts had projected. Bitcoin has already surpassed the dominance projections that experts predicted would not be achieved until late 2024.
Unrealistic Altcoin Valuations
Mow identifies unit bias as among the key behavioral factors influencing the decisions of investors. Behavioral economics illustrates such a cognitive bias that makes people avoid fractional ownership and insist on whole ownership. He will opt to invest in cheaper altcoins since he considers them to have higher quality than partial ownership of bitcoin. The unit bias affects investors’ perception mostly among new entrant in the market.
Mow also found that if there were altcoins at the same total supply as Bitcoin then Ether would be valued at $9,200, XRP at $5,800 as well as Solana at $3,400. The calculated values surpass all the market known to date values by their several folds. Mow shook his head at these high valuations stating that he could not accept them as valid.
Many altcoins have their total supply increased artificially to take advantage of unit bias. Numerous supply figures make it difficult for the investor to assess the value of coins prior to the purchase. Based on analysts’ evaluations, most altcoins could not achieve the high market value in relation to the Bitcoin supply model.
Bitcoin’s Market Dominance Growth
The data from TradingView shows Bitcoin maintains a 63.69% dominance in the market. Numerous analysts predicted that Bitcoin’s market dominance would reach 60% by the end of 2024 yet the actual number exceeded this projection. According to him BTC has not yet reached its peak dominance position. BTC will enhance its market dominance during the upcoming months.
A reduction in Bitcoin’s dominance marks the beginning of an “altcoin season” which occurs historically. Altcoins experience increases in market value when capital moves from BTC to reach elevated returns. The analysis points toward BTC achieving sustained growth in its market share over this specific period. Such a transformation would heavily impact how cryptocurrencies compete against each other.
Bitcoin’s expanding market control seems to break conventional traditional market cycle patterns. His current perspective on Bitcoin’s future brings new insights into both BTC’s development and the complete cryptocurrency sector. The rising dominance level redrew investor perceptions about crypto market strategies.
