Bitcoin and many other cryptocurrencies have continued to see significant price increases over the past few weeks. In particular, Bitcoin is gradually approaching its all-time high, and even though it recently topped $68,000, its increase rate remains at only 8%. Moving away from setting new price records.
Interestingly, this influx into Bitcoin is increasing the cryptocurrency's dominance over altcoins. According to the data, Bitcoin's market power now stands at 65% of the total market capitalization, the highest in three years. This begs the question whether altcoin season will materialize within the current market cycle.
Bitcoin leaves Ethereum and other altcoins in the dust
According to data from Into the BlockBitcoin recently reached 65% market power, the highest value ever recorded for this indicator during the 2021 bull market. During this period, Bitcoin accounted for the majority of investments, eventually ceding some of its dominance to Ethereum and other altcoins in mid-2021.
Interestingly, the cryptocurrency landscape has changed significantly since then, with Bitcoin now gaining a foothold among institutional investors. Therefore, recent inflows into Bitcoin and its dominance can be attributed to inflows from Spot Bitcoin ETFs.
According to flow data from SoSoValue, a US Bitcoin-based spot ETF, had an impressive performance last week. These ETFs saw consistent daily inflows, ultimately resulting in net inflows of $2.13 billion, the highest level since the third week of March.
This is good news for Bitcoin enthusiasts and supporters, but not for those betting on Ethereum to outperform. One such investor is crypto billionaire James Fickell. a person who has suffered a large loss He earned more than $43 million on a high-risk bet that Ethereum would outperform Bitcoin in 2024.
Altcoin season will be here within 6 months
As Bitcoin continues to strengthen its dominance, the possibility of a new altcoin season is becoming increasingly uncertain. Current data The Altcoin Season Index measures 31, well below the threshold of 75 that typically marks the start of an altcoin season.
Despite this cautious outlook, crypto analyst Ash Crypto has a more optimistic outlook for the altcoin season. According to him, the altcoin season will begin within the next six months. in recent social media post Ash Crypto shared with 1.2 million followers of It was predicted that there is a possibility of an increase in the
Based on insights gained during the last market cycle, Ash Crypto believes that the altcoin market outperformed Bitcoin for approximately five months in 2021, shortly after Bitcoin's dominance reached an all-time high. pointed out.
At the time of this writing, Bitcoin is trading at $68,400.
Featured images from Experian, charts from TradingView
