The post Bitcoin Dominance Hits 58.8%: Is Altcoin Season Still Out of Reach? appeared first on Coinpedia Fintech News
Bitcoin’s dominance is on the rise, now at 58.8%, up from 51% in December marking its highest since early 2021. This figure shows Bitcoin’s market share compared to all cryptocurrencies. Despite hopes for an altcoin season, Bitcoin’s dominance keeps growing, defying the usual trend where capital shifts to altcoins as the market matures.
Many crypto investors have been waiting for an “alt season” where altcoins outperform Bitcoin with big returns. Usually, this happens after Bitcoin rallies, as traders cash out and invest in riskier, higher-reward altcoins. However, even with conditions that typically trigger alt seasons, like Bitcoin stability, more market liquidity, and institutional interest, this shift hasn’t happened as expected.
Why is the Bitcoin Dominance Growing?
Bitcoin’s dominance continues to grow because of several key factors. Corporate accumulation strategies, particularly from Strategy keep buying Bitcoin, which creates consistent buying pressure.
Besides, there are also more new tokens than ever, which can spread out investment instead of focusing on established altcoins. Finally, spot Bitcoin ETFs make it easier for traditional investors to buy Bitcoin, while most altcoins don’t have the same level of access.
Ethereum ETF approval last summer was expected to reduce Bitcoin’s dominance, but the impact has been minimal. While ETH ETFs had strong early interest, they didn’t boost the altcoin market as expected. The alt season might still happen, just delayed, with future events potentially triggering a shift to altcoins.
Analyst Sparks Optimism for Altcoins
Rekt Capital, a well-known analyst on X, sparked optimism for an upcoming altcoin season with a key technical signal. He shared a chart showing that if the altcoin market cap closes above a certain level this week, it could trigger the next big rally.
After a sharp crash in early March that wiped out weeks of gains, the altcoin market cap briefly fell below $200 billion however it ended the week above that level. Since then, it has steadily climbed, reaching around $249 billion. Crypto analyst Rekt Capital emhasized that a weekly close above $250 billion could signal a major shift for altcoins.
If altcoins break above $250 billion, it could trigger a rally to $315 billion, confirming the bottom is in. But to reach the December 2024 high of $451 billion, more growth is needed.
