Bitcoin Market Indicator (BMI)
An aggregate indicator of market conditions on a scale of -3 to 3. This is a bitcoin-only indicator. The BMI published in the weekly Fundamentals Report newsletter is aimed specifically at a week time frame. The Daily BMI published in the Member newsletter, the Bitcoin Pulse, is gauged at short term market moves with Technicals receiving more consideration.
- [ 3 ] Extremely bullish – imminent price appreciation
- [ 2 ] Bullish – high likelihood of price appreciation
- [ 1 ] Slightly bullish – probable price appreciation
- [ 0 ] Neutral – no read on the market at this time
- [ -1 ] Slightly bearish – probable price declines
- [ -2 ] Bearish – high likelihood of significant price declines
- [ -3 ] Extremely bearish – with imminent downside risk
Market conditions are based on several inputs
- Fundamentals – including network activity and adoption
- Technicals – including price movements and analysis
- Sentiment – including disposition of market participants
- Macro – including non-bitcoin specific global economic news
In recent years, the importance of stablecoins has grown along with their number. They have a fundamentally different competitive profile for Bitcoin and not considered true altcoins by many. As such, stablecoins aren’t counted in some Bitcoin Dominance measures.
Demand for altcoins is speculative in nature and their value can swing wildly due to hype and manipulation. Altcoin utility is capped by technical limitations and the cost to maintain the appearance of decentralization. On the other hand, demand for stablecoins is driven by their underlying peg, in most cases to the USD, but can also be gold or the Euro. Stablecoins’ utility comes mostly from their ability to route around outdated and over-regulated legacy systems.
The Tether Dominance Index is a ratio of the Tether market cap versus all altcoins (as measured by the Total2 ticker on Tradingview).
The Stablecoin Dominance is a ratio of the market cap of all Stablecoins versus all altcoins (as measured by the Total2 ticker on Tradingview).
The Stablecoin/Bitcoin ratio is simply the market cap of all Stablecoins versus the Bitcoin market cap.