Remember that stomach-churning feeling? That feeling in the pit of your stomach when you saw Bitcoin, your Bitcoin, drop like a stone this past March 2020? Or perhaps it was the optimism of 2021, met with the brutal realities of the ensuing bear market? Crypto isn’t only a game of charts and numbers; it’s an emotional rollercoaster. And right now, the market is whispering about a significant shift: Bitcoin dominance might be about to take a tumble. The question is no longer if it will, but what you’ll be doing when it does. And more importantly, what will you do?

Are You Chasing Green Candles?

Let's be brutally honest. How many of us have been after a pump, and ended up getting dumped on. It’s FOMO (Fear Of Missing Out), and it’s crypto-ized a thousand times over. You see those glowing green candles on your random obscure altcoin, and all common sense goes out the window. Then, all common sense goes out the window! "This is it!" you think. "I'm finally going to make it!" You completely throw caution to the wind, forget about your well thought out investment plan and just go all in.

Why? Because who doesn’t want to be first in class? We’re hardwired to covet what other people have – particularly when it is easy pickings in the form of untapped wealth. FOMO is a dangerous game. It clouds your judgment, causing you to make brash moves because you are reacting out of emotion instead of making a logical decision.

Think about it. You've probably seen Bitcoin dominance increase. Perhaps you promised yourself altcoin season would never arrive. It's confirmation bias at play. You’re just looking to confirm your bias. You’re deliberately looking for information that only confirms your pre-formed belief, while willfully disregarding any contradictory evidence. At this point you’re sold that Bitcoin is the one and only. Don’t be fooled by altcoin season … The moment you dismiss altcoins’ potential, even as the charts show what’s blindingly obvious.

And what about anchoring bias? You are living in the world of Bitcoin history, waiting for your ship to come back in after riding its historic wave. You're so anchored to that number that you can't see the forest for the trees. It’s a rapidly changing market out there. If you hold obsessively onto what used to work, your approach will be doomed to failure.

Then there's loss aversion. You're terrified of losing money, so you hold onto losing positions far too long, hoping they'll eventually bounce back. You’re afraid to own up to your failures. Instead of moving on, you hardheadedly refuse to budge.

Plan First, Then Execute Smartly

Alright, so we’ve proven that our brains are programmed to undermine our smart investing choices. What can we do about it? The answer is simple: plan, then execute.

  • Develop a Clear Investment Plan: This is your North Star. Define your goals, risk tolerance, and investment horizon. What are you trying to achieve? How much risk are you willing to take? How long are you willing to wait?
  • Diversify Your Portfolio: Don't put all your eggs in one basket. Diversification can help reduce risk and mitigate the impact of market volatility. A potential drop in Bitcoin dominance, as technical analysis suggests with targets as low as 40% or even 34.9%, could mean altcoins are about to have their moment. Established "DINOs" like Ethereum, XRP, Cardano, and even sectors like AI, RWA, and DeFi could be prime candidates. But, and this is a big but, don't throw money at everything that moves.
  • Stay Informed and Do Your Research: Knowledge is power. Stay up-to-date on market trends and conduct thorough research before investing in any altcoin. Understand the technology, the team, and the tokenomics. Don't rely on hype or speculation.
  • Seek Advice from Professionals: Don't be afraid to ask for help. A financial advisor can provide valuable insights and guidance, helping you navigate the complexities of the crypto market.

You know, that dude who invested in Dogecoin from a Twitter post. Or the girl who bought Bitcoin at the top of the market and sold it all at the bottom because of fear? Don't be those people. Learn from their mistakes.

What If It All Goes Wrong?

Let’s be honest—even with the best intentions, sometimes it’s easy to drop the ball. As with any investment, the crypto market is volatile and there are risks involved. After all, what do you do when your big altcoin bet doesn’t pan out immediately?

First, don't panic. Understand that losing is just the way the game is played. Second, don’t continue to fight a battle you can’t win. That's just throwing good money after bad. Third, learn from your mistakes. What went wrong? What could you have done differently?

The market is different now. Although spot Bitcoin ETFs are a short-term bullish indication for Bitcoin, they lock up liquidity, which can affect the flow of money into altcoins. There’s the fact that there are thousands of altcoins now, compared to the last two cycles in 2017 and 2021. This means careful project selection is critical.

As with any impending Bitcoin dominance decline, it’s not only a technical analysis and fundamental market argument. It’s all about knowing what you’re feeling and you’re biased by, and then trying to make decisions with intention that will serve your investment strategy. More importantly, it’s about being mentally and financially prepared to do what the market demands, no matter which way the pendulum swings.

So, are you emotionally ready? The opportunity is HUGE, but only if you are willing to prepare for the journey. Find a community, find the people who are the best analysts, and above all else, find the confidence in yourself. You've got this.