Originally published on: October 16, 2024
Bitcoin’s dominance in the cryptocurrency market has reached a level not seen in over three years, leaving altcoins struggling to keep up. As Bitcoin’s price surged to a 10-week high of $67,800, its market share peaked at 58.77% on Oct. 15, according to TradingView data.
Despite a brief retracement to $64,880, Bitcoin quickly recovered, trading above $67,000 with a market capitalization of $1.32 trillion. This surge in dominance has historically spelled trouble for altcoins, which mostly traded flat or faced losses as Bitcoin gained 2.5% in a single day.
However, some traders believe that Bitcoin’s dominance is set to decline soon, paving the way for altcoins to shine. ICT Crypto founder Benjamin Cowen predicts Bitcoin’s dominance will top out at 60%, while Coach K Crypto suggests that Bitcoin needs to make a significant move before the altcoin market can see substantial growth.
Analyst Moataz Elsayed has even gone as far as to predict a sharp decline in Bitcoin’s dominance, signaling the start of an altcoin season. This sentiment is supported by the Ether to Bitcoin ratio hitting its lowest level since April 2021, pointing to a potential shift in market dynamics.
While Bitcoin approaches its 2021 high of $69,000, institutional investors continue to show interest, with significant net inflows on US spot exchange-traded funds. With the cryptocurrency market evolving rapidly, investors are keeping a close eye on Bitcoin’s dominance and its implications for altcoins in the coming days.
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