Over the past few days, more and more altcoins have come to the fore with price increases that Bitcoin (BTC) can’t match. Today, many altcoins are also outperforming Bitcoin in terms of price performance, fueling speculation that the infamous ‘altseason’ could be near.
The question now arises whether we have already taken the first steps towards a new altseason, or whether it is still too early to declare altcoins victorious over Bitcoin.
BTC dominance reaches multi-year high
Bitcoin dominance, or BTC’s share of the total crypto market cap, has been on a sharp rise since the start of 2023. Bitcoin has since left the lion’s share of the crypto market behind in terms of price action, much to the frustration of altcoin holders.
Many were convinced that Bitcoin’s dominance had peaked in May of this year, and that the baton would be passed to altcoins to shine. At the time, Bitcoin had captured nearly 56% of the market share, marking its highest level since March 2021.
After a small dip, BTC dominance has risen sharply in recent weeks. Last Friday, a new peak of almost 58% was set.
Dutch crypto analyst Crypto Rover showed last weekend on social media platform X that there is strong resistance for BTC dominance around 57%-59%. He expects that around this level “a big reversal” will take place, and is “very optimistic” about altcoins.
For now, dominance is indeed struggling to break through this level. Over the past few days, dominance has dropped slightly to its current point of just above 57%.
Altseason officially started now?
For quite some time now, many crypto investors have been waiting for altseason to start. This is a term that is often used in the crypto world to describe a period in which altcoins outperform Bitcoin. To be precise, 75% of altcoins must outperform Bitcoin.
Although several altcoins have succeeded in this in recent days, an altseason in this regard is still a long way off.
An altseason often starts with Ethereum. Shifting capital into Ethereum can cause a domino effect, with investors also putting their money into other altcoins. With US spot Exchange-Traded Funds (ETFs) starting to outperform, many analysts expect Ethereum to increasingly take the spotlight.
Today, Ethereum is already doing a lot better than Bitcoin, as you could read in the crypto news this morning, but of course it is still too early to speak of a shift.
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Source: https://newsbit.nl/altcoins-verslaan-bitcoin-is-dit-het-begin-van-altseason/
