The landscape of cryptocurrency is constantly evolving, and recently, a question has been gaining traction: Is Bitcoin Dominance Coming to an End? Some analysts are suggesting that ‘Altcoin Season’ might be upon us, signaling a significant shift in market dynamics. This idea stems from emerging trends and market patterns that indicate altcoins could be gaining ground against Bitcoin.
Bitcoin Dominance vs. Ethereum: Marking a 6% Increase in 2024
A recent report by IntoTheBlock highlights a notable increase in Bitcoin’s market dominance, which has widened the gap between BTC and other digital assets, including Ethereum and stablecoins. The report reveals a 6% increase in BTC’s dominance over Ethereum in 2024.
Currently, Ethereum, the largest altcoin by market capitalization, is experiencing a downturn when compared to Bitcoin. This underperformance is largely attributed to the less successful launch of Ethereum’s spot exchange-traded fund (ETF).
In contrast, Bitcoin ETFs have accrued approximately $18 billion over the last eight months, whereas Ethereum ETFs have mostly seen net outflows since their inception in late July. This trend underscores investors’ preference for Bitcoin, likely due to its perceived stability.
The introduction of spot exchange-traded funds has undoubtedly solidified Bitcoin’s dominance in the crypto market. However, a well-known crypto analyst has suggested that this trend might be shifting in favor of altcoins.
Is Altcoin Season Here? Analysts Believe So
Crypto analyst Ali Martinez provided insights suggesting that Bitcoin dominance could be waning, signaling the arrival of an altcoin season. Martinez’s analysis is rooted in the observed technical patterns on the BTC dominance and total market cap charts (excluding the top 10 assets).
According to Martinez, Bitcoin’s dominance might be approaching a trend reversal, identified by a rising wedge chart pattern on the weekly timeframe. Simultaneously, the altcoin market cap is breaking out from a falling wedge pattern on the three-day chart, indicating a potential bullish reversal for altcoins.
Source: Ali_charts/X
For clarity, a rising wedge typically suggests a bearish reversal, whereas a falling wedge points to a bullish reversal. Martinez’s latest post outlines that with Bitcoin’s dominance chart signaling potential reversal and the altcoin market cap experiencing a positive breakout, the “altcoin season is just around the corner.”
At present, the total market capitalization of assets outside the top 10 stands at approximately $213.814 billion.
Total market cap (excluding top 10 assets) on the daily timeframe | Source: OTHERS chart on TradingView
Featured image created with Dall.E, chart from TradingView
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