Bitcoin Dominance Expected to Rise Further, Says Jan3 CEO

According to Cointelegraph, Jan3 CEO Samson Mow has expressed confidence that Bitcoin's dominance in the cryptocurrency market has not yet reached its peak. Mow's analysis suggests that Bitcoin (BTC) is poised for further growth, surpassing the expectations of many crypto analysts who predicted a plateau by late 2024. In an April 19 post on X, Mow highlighted the impact of 'unit bias'—a psychological tendency where investors prefer owning whole units of cheaper altcoins over fractional Bitcoin ownership. This bias, he argues, leads less experienced investors to mistakenly perceive altcoins as better value. Mow challenges the valuation of altcoins by proposing a scenario where unit bias is removed, allowing for a direct comparison with Bitcoin's supply. He illustrates that if altcoins were evaluated on an equal footing with Bitcoin's 21 million supply cap, Ether (ETH) would be valued at $9,200, XRP at $5,800, and Solana (SOL) at $3,400. These figures represent significant increases from their current market prices, according to CoinMarketCap data. Mow asserts that such valuations are unrealistic for these altcoins. Sunny Po, an anonymous Bitcoin advocate, echoed Mow's sentiments, stating that unit bias is a fundamental mindset among novice investors who equate lower prices with better value. Mow further explained that many altcoins exploit this bias by maintaining a high total supply, making it difficult for investors to assess their true value. Mow's calculations indicate that Bitcoin dominance is set to rise significantly. Bitcoin dominance, a metric that measures Bitcoin's share of the total cryptocurrency market capitalization, is a key indicator for traders to assess potential price peaks. Historically, a decline in Bitcoin dominance often signals the onset of an altcoin season, where capital shifts from Bitcoin to altcoins in search of higher returns. Currently, Bitcoin dominance has increased by 9.11% over the past six months, standing at 63.66% according to TradingView data. This rise contradicts earlier forecasts by several crypto analysts who anticipated Bitcoin dominance to peak at 60% by late 2024, preceding an altcoin season. In August 2024, Benjamin Cowen, founder of Into The Cryptoverse, stated that he did not expect Bitcoin dominance to reach 70%, setting his target at 60% instead.