Crypto News Today: Estimating the Prices of Ethereum, XRP, Bitcoin Cash, and Litecoin Using Bitcoin’s Dominance

Altcoin season is one that many digital asset investors anticipate. Sadly, the season is not starting anytime soon. If altcoin season begins today what will the prices of the top cryptocurrencies look like? What is if Bitcoin price continues to reign supreme among all the other crypto and its dominance continues rising, how will others perform? Let’s see how it will be below.

To get this information, a model was prepared with different Bitcoin dominance scenarios to show the price implications that an altcoin season will have on the prices of Ethereum, XRP, Litecoin, and Bitcoin Cash. This offers an estimate of how the crypto market would look in the above-mentioned scenario.

The 2017/2018 Altcoin Season

Among the popular crypto enthusiasts, there’s currently an ongoing debate regarding whether another altcoin season (that is an extended period where altcoins make gains that see them outpace Bitcoin) will occur. The most recent altcoin season which happened in the year 2017, saw a number of altcoins make 10x+ returns within weeks. The gains were over the top.

That altcoin season began on December 7 of 2017. At the time Bitcoin had just hit its 20k peak position after extending its dominance by 69.9%. The percent share of Bitcoin percent from the total market cap has not reached the level it attained at the time. That altcoin season reportedly lasted for about five weeks. It ended on January 13 of 2018. At the time BTC’s dominance briefly saw a low point of -35.0%.

Ethereum, EOS and XRP Saw Impressive Gains in the 2017/2018 Altcoin Season

During the altcoin season from2017/2018, major coins including the likes of Ethereum, XRP, and EOS saw astronomical gains. From the month of December 7 to January 13, these coins yielded the returns highlighted under:

Ethereum shot up from the $417 area to trade at the $1312 position which is a three-fold increase. The price of EOS increased from $4.4 to $18.7 for the day at the $16.0 area as well which also saw it make threefold returns. The price of XRP went from the $0.21 area to the $2.0 for eye-popping 9-fold gains for the asset class.

Smaller capped virtual coins saw bigger gains. One example of such is Verge. Verge accelerated from the $0.0078 post to the $0.15 which is ridiculously making gains 18x returns

Using the Model Set by Bitcoin’s Dominance

The model used here for this analysis makes a singular large assumption which is:

That the proportional market dominance of each of the altcoin remains relative to each other. However, the matter of having a proportional market capitalization may eventually shift as the market conditions start to change, it will be good enough for making the best-guess predictions.

The altcoin Season Dominance” value may actually be the lowest value of Bitcoin’s dominance during the last altcoin season from the 2017/2018 bear market. This should be seen as a maximum means for projecting altcoin prices. Additionally, “ a King Season Dominance” uses about 77% dominance as predicted by the co-founder of the Atlanta Digital Currency Fund, Alistair Milne.

If a repeat of the 2017/18 altcoin market high price scenario takes place, the Bitcoin price could trade anywhere from the $17,371 point to the $47,662 level. Ranges for other virtual coins are provided.

 

Brian Lubin is a Crypto News Reporter for Smartereum. He's well-known for his reports on the crypto markets.

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