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Thursday, January 26, 2023

Bitcoin dominance falls to three-year low: Altcoin Season 2021

After a cold shower at the beginning of the week, the crypto market is back to operating temperature. The altcoins are gradually emerging from the shadow of their big brother Bitcoin.

If sales dominated the day-to-day events on the crypto market yesterday, the bulls are taking over the helm again today. Total market capitalization has made a 3.6 percent jump forward, building a secure $ 120 billion lead over the 2 trillion mark again. However, the number 1 can be asked a bit. In a 24-hour comparison, Bitcoin increased a meager 2.8 percent. On a weekly basis, BTC is slipping south by 12.4 percent. At the time of going to press, Bitcoin was trading at $ 55,511, around $ 9,000 below the previous week’s record high.

It’s the old game on the crypto market: If Bitcoin weakens, investors rush to the altcoins. Exchange tokens in particular benefit from this high volume of trade at the trading venues. Binance Coin (BNB), the native currency of the largest exchange ecosystem, posted the largest plus of the ten largest crypto currencies with 17.6 percent on a daily basis. The gap to the all-time high is gradually closing again. With currently 588 US dollars, just under 20 US dollars are short of the record mark. (Also Read: Pantera Capital predicts that BTC price rise will go $ 115,000 by August while DOGE skyrocket)

Ethereum is also gaining ground again after falling to $ 2,050. The second largest cryptocurrency has climbed 9 percent to $ 2,314 in the last 24 hours and is therefore also pointing its feelers back towards the top brand.

In addition to Binance Coin, XRP can also increase in the double-digit percentage range. The ripple currency rose with an exchange rate premium of 11 percent to 1.41 US dollars. Bitcoin Cash (BCH) also posted a respectable plus of 9.2 percent. With Cardano (ADA), Polkadot (DOT) and Litecoin (LTC) the profits level off between 5 and 7 percent. (Also Read: Ripple (XRP) price explodes: no end in sight)

Only one person doesn’t really want to go along with it. The high-flyer of the past few weeks, Dogecoin (DOGE), fell 18 percent to $ 0.33. On yesterday’s Doge-Day , of all days, which was actually supposed to transport the coin into the stratosphere, Dogecoin ran out of breath. Despite profit-taking, an end to the rally does not appear to be in sight. In the hourly chart, DOGE is up almost 5 percent again.

Bitcoin dominance is falling

The daily performance of Bitcoin and the Altcoins indicates a creeping decoupling from the crypto reserve currency. The BTC dominance, and with it the distribution of the crypto market share, has been shifting in favor of the altcoins for weeks. At 51 percent, the dominance has slipped to a three-year low. Most recently, “BTC domination”, i.e. the percentage of total market capitalization, was at a similar level in mid-2018. (Also Read: Binance Coin (BNB) Arbitrage, Price Prediction and Technical Analysis Prediction 2021-2022)

However, this is not a bad signal, on the contrary. The fact that the altcoins correlate less with Bitcoin than a few months ago speaks for healthy market growth and shows the differentiation of the token landscape. The more draft horses and fewer “mayflies” the market counts, the more mature the crypto ecosystem becomes.

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