Bitcoin dominance in the crypto market is rising to record levels, and altcoins are increasingly losing ground. Since March 2021 Bitcoin (BTC) has reached its highest level of dominance, making both investors and analysts sit up and take notice. While in the past the dominance was repeatedly interrupted by short correction phases in which altcoins stabilized, this is currently not the case. This begs the question: Is the end of the altcoin hype reached, or does it just need new highs and periods of consolidation for BTC for altcoins to have a chance?
Dominance without correction: The great Bitcoin momentum
Bitcoin is currently dominating the market to an extent that surprises even long-standing market participants. One reason for this could be the increased interest of institutional investors, who prefer to invest in this “digital gold standard” rather than in altcoins with higher risks due to the relative stability of BTC. This market shift is reflected in the dominance valuation, with BTC now accounting for over 50 percent of the market value of all cryptocurrencies.
As expected, Bitcoin dominates the entire crypto market and BTC dominance reaches its highest level since March 2021 🔥
In contrast to past cycles, dominance is currently not even experiencing minor correction phases in which altcoins can make up ground again.
Is the… pic.twitter.com/27qpJttFcJ
— Furkan Yildirim (@FurkanCCTV) October 29, 2024
Interestingly, the usual cyclical correction in which altcoins would normally increase in value as soon as BTC stagnates is missing. Experts speculate that a new stimulus is needed for the altcoin markets to regain investor confidence. Such an incentive could, for example, be a new Bitcoin all-time high, which in the past has often acted as a stimulus for the entire market. In the Bitcoin News We already reported that we may be close to breaking this new all-time high.
Altcoin future: declared dead or just on the back burner?
While some believe that the potential for altcoins is declining sharply, others see the current situation as temporary. Historically, altcoins often followed a BTC run-up as investors redistributed profits from Bitcoin into smaller projects. If BTC hits new highs again, altcoins could increase in value through subsequent periods of calm, leading to a new one Altcoin season could lead.
The current squeeze in Bitcoin dominance is showing great signs of an upcoming rally in #Altcoins
This #Altseason will catch so many of you off guard pic.twitter.com/HXe1imtJ8N
— Yoddha (@CryptoYoddha) October 25, 2024
However, analysts agree that Altcoins currently need a new growth engine. This could be achieved, for example, through technical innovations or strong partnerships that offer long-term added value. Until then, Bitcoin remains the dominant force – and the altcoin market may never reach the previous hype momentum again.
The future of altcoins remains uncertain while BTC defends its place as the undisputed market leader. Whether this is the final end for the altcoin hype or whether new highs bring a turning point will be seen in the coming market cycles.
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