Emily Walker
The interest and participation in Bitcoin are rising notably among both retail and institutional investors as it experiences a recent price increase. This uptick has significantly boosted Bitcoin’s market dominance compared to other cryptocurrencies.
Bitcoin’s Market Control Nearing Its Peak
As Bitcoin continues its impressive price climb, its dominance in the cryptocurrency market has reached around 60%, indicating a strong sense of trust from investors. Benjamin Cowen, CEO and founder of Into The Cryptoverse, has remarked on this notable increase in control, providing insights on the current trends.
This increased dominance suggests that traders are favoring Bitcoin over alternative cryptocurrencies, reflecting a growing trust in BTC as a reliable asset amidst market volatility. It further indicates that Bitcoin could gain more momentum, reinforcing its leadership position during optimistic market trends.
With Bitcoin’s dominance at 60%, Cowen has expressed his optimistic perspective regarding ALT/BTC trading pairs, suggesting this might be a peak point. He noted, “I think there is a good chance that 60% is the top.”
Upon reviewing the market trends, Cowen believes the sharp increase in Bitcoin’s market control may soon stabilize or come to a close. However, the fate of ETH/BTC pairs will ultimately influence whether Bitcoin’s dominance will hit a new peak or settle at a lower level by December.
According to Cowen, two main factors under consideration include the cyclical perspective and monetary policy, both of which could influence ALT/BTC pairs to reach a final low, thereby turning Bitcoin’s dominance bullish again by December.
Looking back four years, Cowen noted that in mid-November, the ALT/BTC pairs had a brief rally before declining again in December, which is particularly relevant for those following the cyclical view.
On the other hand, from a monetary policy angle, Cowen pointed out that the ALT/BTC pairs in 2019 did not hit their lows until the conclusion of quantitative tightening, which has yet to occur this cycle.
Relationship Between BTC and Altcoin Dominance
As the market shows positive movement, trader and market analyst Ash Crypto has shared insights on the dynamics between Bitcoin and altcoin dominance, speculating that a new altseason could be imminent.
Ash Crypto highlighted that, in previous cycles, there has been an inverse relationship between Bitcoin and altcoin dominance. This pattern has been especially evident in the last two cycles, where altcoin dominance surged as Bitcoin’s dominance fell.
This phenomenon has historically occurred around every eight months following the Bitcoin halving event. Currently, we are approaching the seventh month since the latest halving event, and with both Bitcoin and altcoin dominance at significant levels, Ash Crypto anticipates a potential reversal soon, signaling the start of altseason 2.0.