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Although Bitcoin remains the world’s best digital asset, with its price hovering between $90,000 and $96,000 this week, some experts are looking to the future and beyond. Bitcoin.
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According to some crypto commentators on Twitter/X, Bitcoin’s market dominance is declining, which means altcoin season is about to begin. In a post by MikyBull Crypto, Bitcoin’s market dominance has fallen below its two-year support line, creating a lot of opportunities for coin holders and traders.
According to TradingView, Bitcoin current dominance It is 56.67%, from 57% last week, breaking the two-year support level. Analysts say the continued decline in Bitcoin’s dominance will impact the overall cryptocurrency market in December and beyond.
Market and chain data indicate that altcoins are preparing to take off into the market, with MikyBull Crypto saying its season began on November 30.
Wow, Bitcoin dominance has just broken a 2-year support.
We’re already officially in #TheSeizon O people! https://t.co/IYfQF7P7XI pic.twitter.com/fVysBYuOKn
— Mikybull Crypto (@MikybullCrypto) November 30, 2024
A look at Bitcoin market dominance
In the cryptocurrency space, analysts and market participants use a variety of metrics to evaluate Bitcoin’s performance. Bitcoin dominance is one of the reliable metrics used to determine the relative market share of an asset in the cryptocurrency sector. The higher the percentage of BTC stake, the better for owners and investors.
However, Bitcoin’s degree of dominance has declined in recent weeks. As of December 2, it was 55.3%, compared to 58.9% last month. According to MikyBull Crypto, Bitcoin has fallen below its two-year support.
Bitcoin’s declining dominance offers insight into the strategies of traders and investors. One takeaway is that investors are reallocating their money to other digital assets. Many analysts say that some of these investors are reallocating funds to altcoins, e.g XRPwhich is now escalating.
Analysts say investors are likely to diversify their funds and consider other alternatives to high-growth currencies.
Cryptocurrency analysts and commentators offer different insights
A few altcoins are currently leading the market rally. ether ETH is seeing a sharp price rise and an increase in demand for leveraged exchange-traded funds. On-chain data shows that the product saw a 160% increase in demand immediately after the US election on November 5. Analysts remain bullish on ETH, and many expect the asset to reach $4k soon. Then there is XRP, which is trading above the $2 level.
Swyftx’s Pav Hundal offers a conservative opinion, saying Bitcoin’s degree of dominance could reach 65%, 67% or even 70% before it declines. He argues that complex factors make it impossible to choose the right date for an altcoin rally or Bitcoin decline.
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Not all analysts expect a big rally in altcoins soon
Meanwhile, not all cryptocurrency commentators agree that an altcoin rally will come within days. Ki Young Ju of CryptoQuant advises caution at such times. CryptoQuant CEO remains bullish on Bitcoin, adding that there is still institutional support for Bitcoin, and they are unlikely to refocus on speculative assets.
The CEO added that for altcoins to reach all-time market highs, these assets need a significant influx of capital to cryptocurrency exchanges. He said altcoins should develop strategies to gain capital rather than rely on Bitcoin’s lack of momentum.
Featured image from Finimize, chart from TradingView
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