Mar 24 Sep 2024 ▪
3
min read ▪ by
As Bitcoin maintains its position around $63,000, its dominance in the crypto market is showing signs of weakness. This situation, far from being insignificant, could be a major factor for the crypto market. Indeed, the gradual decline in Bitcoin’s market share seems to pave the way for the rise of altcoins, these alternative cryptos which are, in parallel, recording remarkable performances.
Bitcoin Dominance Questioned
Bitcoin is showing signs of weakening. As its price stabilizes around $63,000, some analysts doubt its ability to break through the next resistances. Despite an attempt to advance towards $70,000, bearish forces continue to hamper buyers’ ambitions. The stagnation in price is accompanied by a more worrying trend: Bitcoin’s dominance in the overall cryptocurrency market, which has not kept pace with its price, suggests a relative loss of interest from investors.
This disconnect between Bitcoin’s rise in value and its market share points to a potential shift. Historically, Bitcoin dominance has been a key indicator of market cycles, but that correlation appears to be weakening. Investors, faced with a more uncertain market, may be redefining their approach, including partially shifting away from Bitcoin to explore other opportunities. If this momentum were to continue, it could signal a major turning point for the future of the cryptocurrency market.
The rise of altcoins
Alongside Bitcoin’s weakening dominance, altcoins are increasingly attracting investor attention. Among them, Bittensor (TAO) stands out with an impressive 18% rise in just 24 hours, contrasting with Bitcoin’s much more modest 2% rise. This movement reflects a transfer of capital towards assets considered more dynamic and less volatile. Bitcoin’s stagnation beyond $63,000 seems to have triggered a strategic shift of investors towards alternative cryptocurrencies. Moreover, Bitcoin-related outflows have reached a two-month high, a sign that confidence in the leading cryptocurrency may be eroding in favor of altcoins.
This surge in altcoins could signal the emergence of an “altcoin season,” a phenomenon where secondary cryptocurrencies outperform Bitcoin in terms of performance. However, for such a season to take hold, Bitcoin will need to continue to show signs of weakness. If bulls fail to keep BTC above $64,000, a correction below $60,000 could fuel this momentum. However, the sustainability of this trend will depend on investors’ ability to maintain their confidence in these altcoins or alternative cryptos.
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A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, relay the latest technological innovations and put into perspective the economic and societal challenges of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.
