- Bitcoin dominance fell below 58%, signaling the start of the altcoin season.
- Altcoins like XRP, Solana, and ADA are outperforming Bitcoin, showing growing market interest.
As a seasoned crypto investor with over a decade of experience navigating the volatile waters of this dynamic market, I find myself intrigued by the recent developments that hint at the dawning of an altcoin season. The fall of Bitcoin’s dominance below 58% and the stellar performance of altcoins like XRP, Solana, and ADA are clear signs that change is afoot.
The price of Bitcoin (BTC) has soared significantly, shattering the $65K barrier and hitting a remarkable high of $92,903.98.
Over the past 24 hours, the cryptocurrency saw a 1.34% increase, and in the past week, it rose by 6.35% as per CoinMarketCap.
The monthly performance has significantly improved, jumping up by 35.58%, demonstrating Bitcoin’s robust strength within the market.
While Bitcoin has been performing exceptionally well, there are growing indications suggesting a potential change in the dynamics of the crypto market.
Is Bitcoin dominance at risk?
Based on a recent study conducted by QCP Capital, a Singapore-based trading company, if Bitcoin’s dominance (BTC.D) drops beneath a significant level, it might ignite the much-awaited surge in alternative cryptocurrencies.
The firm highlighted,
Over the course of the weekend, Solana (SOL) surpassed Bitcoin (BTC) and Ethereum (ETH) in performance, experiencing a 17% surge from its Friday lows. It appears that Solana and other alternative cryptocurrencies are beginning to show some momentum, particularly with the incoming pro-crypto administration of President Trump.
Adding to the fray was an X (formerly Twitter) user, who said,
Indeed, with altcoins on the rise, a significant question surfaces: Could an altcoin rally be imminent?
Altcoins vs. Bitcoin
As an analyst, I’ve observed a historical pattern where altcoins often flourish following a robust rally in Bitcoin, as traders tend to move their profits into smaller-cap digital currencies during periods of Bitcoin consolidation.
Nevertheless, QCP Capital warned that numerous investors exhibit a degree of apprehension, particularly as Bitcoin approached the psychologically important level of $100,000.
Even with current circumstances, QCP anticipates that a possible Donald Trump win in the upcoming U.S. presidency along with expected rate reductions by the Federal Reserve might trigger a strong upsurge in the altcoin market in the coming days.
At the current moment, the dominance of Bitcoin (BTC.D) is at approximately 60.10%, representing a significant increase compared to its level of 39.92% back in November 2022.
For the last two years, Bitcoin (BTC) has persistently surpassed other cryptocurrencies (altcoins), with most of them struggling to keep up with its rapid growth.
Lately, there’s been a noticeable change as altcoins such as Solana, Cardano, and Ripple have been making significant strides, surpassing Bitcoin in performance.
The increased success of alternative cryptocurrencies (altcoins) mirrors the rising anticipation for a crypto-friendly policy from a possible Trump administration. This indicates that the distribution of power between Bitcoin (BTC) and altcoins might change in the coming days.
What are the latest market trends telling us?
According to the most recent figures from CoinMarketCap, Bitcoin has gained approximately 6.47% over the last seven days. In contrast, altcoins such as Solana, XRP, and Cardano have witnessed significant growth, with Solana rising by 15.77%, XRP soaring by 64.33%, and Cardano climbing by 48.70%.
The change in direction is mirrored by the increase in the Altcoin Season Index, moving from 33 to 39. This suggests a rising curiosity towards coins such as Ripple (XRP), Dogecoin [DOGE], and Bonk [BONK].
As I observe Bitcoin’s difficulties in reasserting its supremacy, it appears we might be witnessing the dawn of an altcoin rally. This shift could potentially present investors with a valuable chance to broaden their cryptocurrency investment horizons.
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2024-11-20 20:08