Bitcoin dominance hits 3-year high as BTC price dip pressures altcoins

The market value representation of Bitcoin (BTC) has reached its peak in the past three years, while altcoins experience increased pricing struggle.

Based on the data from CryptoMoon Markets Pro and TradingView, Bitcoin’s proportion of the entire crypto market capitalization reached a peak of 56.3% on April 12.

Altcoins see “real damage” in wake of BTC price rout

Over the weekend, the price of Bitcoin dropped dramatically due to a series of forced sales that pushed the value down to around $65,300 per coin.

Simultaneously, while Bitcoin encountered challenging circumstances, according to the data, the condition for many top-20 cryptocurrencies in terms of market capitalization was even harsher – over 15% of their values decreased.

Bitcoin dominance hits 3-year high as BTC price dip pressures altcoins

Through this action, altcoins lost crypto market dominance to Bitcoin, and the current peak levels represent the most significant Bitcoin presence in the cryptocurrency market since April 2021.

“Bagsy, a well-known trader and social media commentator on X (previously Twitter), usually avoids examining Bitcoin’s dominance in the market. Nevertheless, he was taken aback by the striking chart depicting this trend, given the constant emergence of new altcoins daily.”

Daan Crypto Trades, a colleague in cryptocurrency trading, observed the disparity in price drops between Bitcoin and alternative coins over the past few days.

He informed his X audience that the impact on Bitcoin (BTC) was quite small when it came to the recent price hit, and the overall decrease in value didn’t amount to much during the discussion about Bitcoin open interest.

“The real damage was done in the Altcoin sector which wiped out billions of Open Interest and made for wicks up to 50%.”

Bitcoin dominance hits 3-year high as BTC price dip pressures altcoins

“Altseason” hopes stay in play

In the past, strong Bitcoin rallies have typically been preceded by a rise in Bitcoin’s market dominance at the beginning. After Bitcoin’s price stabilizes during a prolonged consolidation phase, altcoins often experience significant gains.

In the year 2024 up until now, altcoins have shown good performance but have yet to experience sustained favorable conditions for significant growth.

Anticipating future events, Mikybull Crypto, my trading companion, believed change was imminent.

In a Reddit post, he stated that the market capitalization of altcoins is mirroring the pattern of past altcoin seasons.

“This is the last shake-off before it rips explosively upward coupled with Bitcoin dominance downward trend.”

Bitcoin dominance hits 3-year high as BTC price dip pressures altcoins

A chart that went hand in hand with the text showed Bitcoin‘s (BTC) and altcoins’ market share, making observations based on late 2020 – a significant timeframe as BTC broke free from its prior larger trading band priced under $20,000.

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2024-04-13 19:46