2 December 2024
Although Bitcoin remains the world’s top digital asset, its price oscillating between $90k and $96k this week, some experts are looking ahead and beyond Bitcoin.
According to some crypto commentators over Twitter/X, Bitcoin’s market dominance is dipping, which means that altcoin season is about to start. In a post by MikyBull Crypto, Bitcoin’s market dominance falls below its two-year support line, creating plenty of opportunities for holders and traders.
According to TradingView, Bitcoin’s current dominance is 56.67%, from last week’s 57%, breaking through its support level for two years. Analysts say that the continuous dip in Bitcoin’s dominance will impact the general crypto market this December and onwards.
On-chain and market data suggest that altcoins are poised for a market run, with MikyBull Crypto saying that its season started November 30th.
Wow, Bitcoin dominance has just broken down the 2-year support.
We are indeed officially in #ALTSEASON folks! https://t.co/IYfQF7P7XI pic.twitter.com/fVysBYuOKn
— Mikybull
Crypto (@MikybullCrypto) November 30, 2024
A Look At Bitcoin Market Dominance
In crypto, analysts and market participants use a variety of metrics to assess Bitcoin’s performance. Bitcoin dominance is one reliable metric used to determine the relative market share of the asset in the crypto sector. The higher the percentage share of BTC, the better it is for holders and investors.
However, Bitcoin’s dominance score has been dipping in recent weeks. As of December 2nd, it is at 55.3%, compared to 58.9% last month. According to MikyBull Crypto, Bitcoin has dipped below its two-year support.
A declining Bitcoin dominance offers insights into the traders’ and investors’ strategies. One takeaway is that investors are reallocating their cash to other digital assets. Many analysts say that some of these investors are reallocating funds to altcoins, like XRP, which is now surging.
Analysts say investors are potentially diversifying their funds and looking at other high-growth coin alternatives.
Analysts And Crypto Commentators Offer Differing Insights
A few altcoins are currently leading the market surge. Ether is experiencing a spike in price and increased demand for leveraged ETH exchange-traded funds. On-chain data shows the product experienced a 160% increase in demand immediately after the November 5th US elections. Analysts remain bullish on ETH, and many expect the asset to hit $4k soon. Then, there’s XRP, which trades above the $2 level.
Pav Hundal of Swyftx offers a conservative opinion, saying that Bitcoin’s dominance score may still hit 65%, 67%, or even 70% before it declines. He argues that complex factors make it impossible to pick the right date for altcoin’s surge or Bitcoin’s decline.
Not All Analysts See An Altcoin Surge Soon
Meanwhile, not all crypto commentators agree that altcoins’ surge will come in days. Ki Young Ju of CryptoQuant advises caution on times like this. The CryptoQuant CEO remains bullish on Bitcoin, adding that there’s still institutional support for Bitcoin, and it’s unlikely that they will refocus on speculative assets.
The CEO added that for altcoins to reach all-time high market caps, these assets need a considerable capital inflow to cryptocurrency exchanges. He said that altcoins must develop strategies to earn capital instead of relying on Bitcoin’s lack of momentum.
Featured image from Finimize, chart from TradingView