Bitcoin’s dominance has increased to 52% on some sources after the asset attempted to surpass the $71,000 level but failed, currently just under $70,000 as of Thursday (March 28th).
Altcoins have experienced greater retracement, which is evident by the increasing BTC dominance. As CryptoPotato reported, Ethereum (ETH) and other leading altcoins have retraced significantly, taking $50 billion from the cryptocurrency market cap, which fell below $2.8 trillion.
While altcoins are bleeding, the Bitcoin halving might decrease the asset’s dominance, according to market observers. One such analyst is Michael van de Poppe, who stated that the decrease in the BTC dominance could set a new bullish path for altcoins.
After the halving, the #Bitcoin dominance is likely to start falling substantially.
The $BTC valuation of altcoins are super low, hence why there’s a strong interest in purchasing them. pic.twitter.com/8eDWKBmGXZ
— Michaël van de Poppe (@CryptoMichNL) March 27, 2024
Van de Poppe’s analysis emphasizes Bitcoin’s role as a leading indicator for the broader cryptocurrency market. A familiar market behavior shows that altcoins tend to rally after BTC experiences substantial growth, given that retail and venture capital rotates towards them with lower valuations but potential returns.
BTC’s dominance is reaching early 2021 levels, as per data from CoinCodex. Similarly, Grayscale displayed in its latest report a market pattern where BTC’s increasing dominance results in a rally for altcoins. Despite BTC’s recent price fluctuations, optimism remains regarding the potential for a new ATH before the upcoming April halving.
Additionally, market observers believe BTC’s bullish momentum might squeeze short traders, while the primary asset could reach “conservative” prices above $100K.
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