Bitrabo Editorial
Bitcoin (BTC), the leading cryptocurrency by market cap, has emerged as one of the top-performing digital currencies in 2024. Despite facing challenges over the past few months, its value has surged by over 137% in the last year.
Bitcoin’s Dominance Grows While Ethereum Struggles
A new report from IntoTheBlock highlights that Bitcoin has significantly increased its lead over other cryptocurrencies. The blockchain analytics platform noted a 6% rise in BTC’s market dominance compared to Ethereum (ETH) and stablecoins this year.
Data reveals that Ethereum, which holds the title of the largest altcoin, is currently at a low point in relation to Bitcoin. This decline for ETH is mainly due to a lackluster performance of its spot exchange-traded funds (ETFs) since their introduction.
In contrast, spot Bitcoin ETFs have attracted around $18 billion since their launch eight months ago, while Ethereum ETFs have seen significant net outflows since their rollout in late July. This shift indicates that investors are currently favoring Bitcoin for its relative stability.
Overall, the emergence of spot ETFs has strengthened Bitcoin’s position within the cryptocurrency market. However, a well-known crypto analyst has shared an intriguing forecast concerning Bitcoin’s dominance and the potential rise of altcoins.
Could an Altcoin Season Be Approaching?
Crypto analyst Ali Martinez recently took to X to discuss the possibility that Bitcoin’s dominance might be waning, suggesting that an altcoin season might be on the horizon. This analysis is founded on observed technical patterns in the BTC dominance and overall market cap charts, excluding the top 10 assets.
Martinez suggests that a trend reversal for Bitcoin dominance could be imminent, as indicated by the development of a rising wedge pattern on the weekly chart. In contrast, the altcoin market appears to be breaking out of a falling wedge formation on the three-day chart.
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To clarify, a wedge is a technical analysis term describing price chart patterns with converging trend lines. A rising wedge often seen in upward trends can signal a potential price drop, while a falling wedge typically indicates a forthcoming price increase.
Martinez emphasized that “altcoin season is approaching,” particularly with Bitcoin dominance patterns suggesting a possible reversal and altcoin market cap showing signs of a bullish breakout.
As it stands, the total market cap for assets outside the top 10 is approximately $213.814 billion.