Bitcoin’s dominance in the cryptocurrency market has seen a slight decline, leading analysts to speculate that it may have reached its peak as traders turn their attention to altcoins.
According to Michaël van de Poppe, the founder of trading firm MNTrading, it is likely that “Bitcoin dominance has peaked”, noting that “the bottom for altcoins is likely in.” He further explained that there is a rotation happening as altcoins start to show strength against Bitcoin.
A drop in Bitcoin dominance can indicate a potential upswing in the altcoin market, as investors move their capital from Bitcoin, which is considered a more stable store of value, to altcoins that tend to be more volatile.
Matthew Hyland, a crypto trader, also highlighted that Bitcoin dominance is losing significant support and stated that he is waiting for the weekly close before confirming or denying the breakdown.
Currently, Bitcoin’s dominance stands at 53.90%, down 1.75% in the past week but still up 4.63% since the beginning of the year, according to TradingView data.
IncomeSharks, a trading team, mentioned in a post that if Bitcoin’s price continues to stagnate for a few months, altcoins could take advantage. They also noted that many altcoins are performing surprisingly well.
In the past 24 hours, Solana (SOL), Pepe (PEPE), and Dogwifhat (WIF) have experienced slight gains of 2.76%, 3.04%, and 3.25% respectively, according to CoinMarketCap.
The decrease in Bitcoin’s market share coincides with a 10.44% decrease in its price over the past seven days.
However, the current market sentiment raises doubts about the speculation that Bitcoin’s dominance has peaked. Rising fear levels in the market indicate uncertainty, which could lead traders to reallocate their funds back into Bitcoin rather than riskier crypto assets.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.