I’ve been trading Crypto since about 2014.
Some people were trading it even before me.
Never has the total Cryptocurrency market been worth as much as it is today.
Even if you don’t own any Crypto – even if you never plan to own any Crypto – this historic feat still has implications for your portfolio
That’s especially true for U.S.-based investors.
Total Crypto Market-Cap All-Time High
If you take all the Cryptocurrencies in the world and add up all their market values, right now you have the highest total of all-time:
This includes Bitcoin (BTC) and Ethereum (ETH) as well as Solana (SOL) and all the others.
Bitcoin is currently valued at about $2.3 trillion. Ethereum is nearing $420 billion. These are the biggest two, and they start to go down from there.
Ripple (XRP) is just under $200 billion, Binance (BNB) is around $100 billion, and Solana is pushing $95 billion.
The infamous Dogecoin (DOGE) has a market cap just above $30 billion.
Total Crypto market cap is just over $3.7 trillion, with Bitcoin representing roughly 62% of it all.
But that number is falling… fast!
Bitcoin Dominance Is Crashing
Everybody reads “Bitcoin dominance is crashing” and thinks it’s bad news for Crypto, the broader market, and their portfolios.
Everybody’s wrong.
This is the most bullish thing that can happen to Crypto… and Tech stocks… and the broader market.
Take a look at the chart of Bitcoin Dominance:
This is the percentage of the value of all Crypto Assets that Bitcoin’s share of the total Crypto market has fallen quickly from its recent high above 66%.
For my money, this is the beginning of Alt-coin season – the period in the cycle when the Crypto assets with lower market-caps outpace Bitcoin.
That doesn’t mean the price of Bitcoin is going to fall. In fact, it’s the opposite.
I think Bitcoin does very well in this environment.
It’s just that a lot of the other, smaller, Cryptos are likely to do a lot better.
This outperformance from smaller Cryptos will eat into Bitcoin’s share of total market-cap.
And, remember, we don’t treat Crypto like some other asset class. They’re just more Tech stocks.
If the price of Bitcoin is going up, the total market-cap of all the Cryptos are going up, and the smaller ones are catching up and outperforming the larger ones, what does that say about risk appetite?
It’s not a coincidence that these assets trade with Tech stocks, high-growth names in particular.
It’s what they are.
We’re long Ethereum looking for rotation back into the No. 2 Crypto, and we’re seeing it happen.
Last week we increased our Crypto exposure, adding a Galaxy Digital (GLXY) position to the Grayscale Ethereum Trust ETF (ETHE) trade we had on.
We have options on both of these trades, and they’re working great.
Our GLXY options already doubled in price.
I expect to add even more exposure using traditional financial assets that allow us to capitalize on this secular bull run for Crypto.
You don’t have to “trade Crypto” to benefit from it.
Chances are, you’re already winning.
The question is, are you winning enough?
Stay sharp,
JC Parets, CMT
Founder, TrendLabs