Ethereum catches up while Bitcoin Dominance is falling

Where Bitcoin (BTC) waved the scepter for months, we now see an important reversal of the trend. The digital currency has been moving sideways for a few weeks, and exactly now that it is catching, the Ethereum (ETH) that makes a catch -up. We see a decrease in Bitcoin’s dominance, and in the past this often herded an ‘altseason’.

First bitcoin, then altcoins

In the past two months, ETH has risen by no less than 87%. After reaching the lowest relative level compared to Bitcoin in five years, the Smart Contract Platform made an impressive catch -up. We also see this in the decreasing dominance of Bitcoin, whereby the market capitalization of the digital currency is compared to the total cryptomarket.

Although we cannot yet speak of a fully -fledged Altcoin season, the current trend does indicate a possible change. Continue this development, then we can prepare for more fireworks within the Altcoinmarkt.

In earlier cycles, such as those from 2021 and 2017, we saw a similar pattern: Bitcoin wins as the first site and rises in value, after which investors reinvest their profit in smaller projects.

Usually the shift starts at Ethereum, followed by other large altcoins, and in the end the capital also flows to the little ones, the so -called ‘small caps’.

According to the Altcoin Season index of Coinmarketcap, we also see an increasing chance of an altseason visible. The index climbed from 17 to 32 in just two weeks. As soon as this figure exceeds 75, we officially speak of an altseason. The figure reflects the number of coins from the Top 100 that performs better than Bitcoin in a period of 90 days.

Ethereum ETFS are also gaining ground

ETH is also doing better than its big competitor with the Spot Exchange-Traded Funds (ETFS). Almost three weeks in a row, the funds of the largest Altcoin have seen substantial inflow, good for a total of more than 1 billion dollars. In contrast to the Bitcoin funds, we regularly see out. Last Friday and Thursday, a total of more than 325 million dollars flowed from the stock market products.