Bitcoin Dominance Soars as Altcoin Season Uncertain

Bitcoin’s Market Dominance Hits 65%

Bitcoin has been surging in price, nearing its all-time high with a recent break above $68,000, putting it on the cusp of setting a new record. This surge in Bitcoin’s price has led to an increase in its market dominance to 65%, the highest in three years. This resurgence of dominance raises doubts about the possibility of an altcoin season in the current market cycle.

Bitcoin Outperforms Altcoins

Data from IntoTheBlock shows that Bitcoin’s dominance has reached 65%, its highest level during the 2021 bull market rally. The shift in dominance can be attributed to the inflows from Spot Bitcoin ETFs, with the US-based ETFs experiencing significant inflows, reaching $2.13 billion in net inflows last week. These factors have propelled Bitcoin’s dominance over altcoins like Ethereum.

Uncertainty Surrounding Altcoin Season

Despite Bitcoin’s stronghold, the potential for a new altcoin season remains uncertain. Current data from the Altcoin Season Index indicates a reading of 31, well below the threshold of 75 that typically signals the onset of an altcoin season. However, crypto analyst Ash Crypto remains optimistic, predicting that the altcoin season could kick off within the next six months.

Predictions for Bitcoin and Altcoins

Ash Crypto forecasts that Bitcoin will continue its dominance in the short term, possibly reaching new price highs of $80,000 to $90,000 within the next 30 days. Drawing from previous market cycles, he suggests that the altcoin market could outperform Bitcoin for a period following its dominance peak.

At the moment, Bitcoin is trading at $68,400, continuing its upward trajectory amidst market uncertainties.

Image Source: Experian, Chart from TradingView