Bitcoin and many other cryptocurrencies have seen significant price increases in the past few weeks. Bitcoin, in particular, is approaching all-time highs, and the recent break above $68,000 puts it at just 8%. Far from setting a new record price.
Interestingly, this influx into Bitcoin has increased its dominance over cryptocurrencies. According to the data, Bitcoin’s market dominance now stands at 65% of the total market cap, the highest percentage in three years. This raises the question of whether altcoin season will continue to unfold in the current market cycle.
Bitcoin leaves Ethereum and other altcoins in the dust
According to data from IntoTheBlockBitcoin recently reached a market dominance of 65%, the highest level recorded for the metric during the 2021 bull run. During that period, Bitcoin accounted for the lion’s share of investments before eventually giving up some of its dominance to Ethereum and other altcoins in the mid-2000s. Year 2021.
Interestingly, the cryptocurrency landscape has changed dramatically since then, and Bitcoin has now found a place among institutional investors. As such, recent inflows into Bitcoin and its dominance can be attributed to inflows from Spot Bitcoin ETFs.
according to Data flow from SoSoValue, a US-based bitcoin ETF, saw an impressive performance last week. These ETFs saw steady inflows each day, peaking with a net inflow of $2.13 billion, the highest level since the third week of March.
This is good news for ardent Bitcoin investors and supporters but not for investors betting on Ethereum’s overperformance. One of these investors is cryptocurrency millionaire James Fickle, Who lost large sums of money More than $43 million, on his high-risk bet that Ethereum would outperform Bitcoin in 2024.
Altcoin season will happen in six months
As Bitcoin continues to consolidate its dominance, the prospect of a new altcoin season is becoming increasingly uncertain. Current data from The Altcoin Season Index shows a reading of 31, well below the threshold of 75, which typically indicates the start of the altcoin season.
Despite this cautious outlook, cryptocurrency analyst Ash Crypto offers a more optimistic perspective on the altcoin season. According to him, the altcoin season will start in the next six months. In recent social media mail Ash Crypto shared with his 1.2 million followers on
Drawing on insights gained during the previous market cycle, Ash Crypto noted that the altcoin market outperformed Bitcoin for about five months in 2021, right after Bitcoin dominance reached all-time highs.
At the time of writing, Bitcoin is trading at $68,400.
Featured image from Experian, chart from TradingView
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