Bitcoin’s Dominance Is Falling—But Don’t Count on Altcoin Season Yet, Analysts Say

BitcoinThe market hat is shrinking compared to other popular cryptocurrencies because US President Donald Trump is still retreating from his once suppressed trade war. But that doesn’t mean “Altcoin season“According to the analysts, he is around the corner.

They say that a recent pivot to the risk of asset that hovered Ethereum And other altcoins may not last in the middle of the ongoing macroeconomic uncertainties and that investors could prefer a safer digital asset if volatility reappears.

“When the markets are focused on macroeconomic instability and risks for the US dollar, the dominance of bitcoins is likely to rise,” said Zach Pandl, research manager Crypto Asset Manager, gray. Unscramble. “When markets focus on all applications of blockchain technology and innovation that take place in crypto, the dominance of bitcoins will drop.”

On Saturday, the Bitcoin market was over $ 2 trillion. Bitcoin dominant brands differ in how many coins they follow, but permanently show BTC at a four -year maximum compared to the main altcoins or the entire field.

Data TradingView shows that Bitcoin is about 63.5% of this combined market value between 125 cryptocurrencies according to the market ceiling. At the beginning of this month, the dominance of bitcoins reached 64.89%in this graph, which represents its highest level since January 2021. Dominance of Bitcoins to 60.4% Compared to all other coins monitored on the market.

Over the past two weeks, the Ethereum price increased by $ 36% to approximately $ 2,485, outperforming a bitcoin increase and creating a small but noticeable slump in the dominance of bitcoins, along with other altcoins, which also increased more than bitcoins during this period.

Ethereum was one of the digital assets crushed by the initial efforts of Trump on the transformation of global trade, with its price dropped by 45% in the first quarter and slipping below $ 1,500 in April, according to Congecko crypt data provider.

Bitcoin benefits from its display as a non-ideal asset, such as gold, while absorbing most of the capital flows into crypto through products such as the funds traded on the stock exchange last year-Said Pandl.

During the previous market cycles, the bitcoin dominance cycles fell after its peaks and traders turn the means to altcoins, which are further on the risk curves – that was the once predominant mythos in this industry. However, the Bitcoin ETF spot could be contrary to this dynamics because products that do not allow investors to get into an alternative asset on the chain.

Between up to nine to 12 months, it is likely that the dominance of bitcoins will be more than 60% to 70% of the total market, unlike sharply lower, Pandl said. It is a difficult call, he added that since bitcoins and altcoin have different tail winds that could be in the game.

“For macro reasons, we are more or less the same bull on bitcoins and altcoins for technological and adoption reasons,” he said. “My work assumption is that you pay from here.”

Juan Leon, Senior Investment Strategist for Krypto Manager Bitwise, said Unscramble This dominance of bitcoins reflects the increased risk taste of investors. Trump’s 90 -day Paufy tariff in combination with lower inflation relieves wider concerns about slowing in the US economy while raising the hope of lowering the federal reserve rates, he said.

Lower interest rates tend to benefit risk assets such as stocks and crypto for cheaper lending and increased liquidity. When the fed mow Last year they borrowed the cost of crypto, although it was before the election of the first US “President” crypto.

Leon’s sentiment was repeated by Greg Magadini, Director of Derivatives for Crypt Data Provider Amberdat, who said Unscramble that the market “had a huge revival in risky assets all week, [and] That was great for altcoins. ”

Magadini noted that the price of Gold fell because business negotiations between the US and China fell. Bitcoin, which “trades in a combination of risk and” digital gold “, therefore lost the soil on altcoins, which” are purely risky game “, he added.

Edited by James Rubin