Bitcoin dominance struggles at 58%: Good news for altcoins?

  • Bitcoin dominance continues to struggle at key resistance. 
  • The altcoin season index reached its highest level in six months.

As a seasoned analyst with over a decade of experience in the crypto market, I’ve witnessed countless cycles and trends that have shaped this dynamic and evolving space. The current situation presents an interesting juxtaposition between Bitcoin and altcoins, which could herald a potential shift in market dynamics.


The dominance of Bitcoin (BTC) has been facing challenges at a significant barrier of 58%. This struggle could potentially lead to a more vibrant period for alternative coins, as a continued dip in Bitcoin’s market share might hint at a stronger altcoin rally.

Historically, altcoins exploded when BTC dominance declined. 

Since 2023, BTC dominance (BTC.D) has increased from 40% to a recent high of 58%.

Yet, the 58% threshold also serves as a potential barrier for further advancement, and if it remains unbroken, it may lead to a decrease in Bitcoin’s market dominance. Many market analysts predict that this decline could fuel the surge of alternative cryptocurrencies.

Bitcoin dominance struggles at 58%: Good news for altcoins?

Altcoin season hits 6-month high

One of the metrics used to gauge the health of altcoin sectors is the ETH/BTC ratio. It gauges ETH’s value relative to BTC.

Moreover, given that Ethereum (ETH) is the most significant altcoin, the ETH/BTC ratio can be used as a benchmark to gauge the general performance of the entire altcoin market.

Bitcoin dominance struggles at 58%: Good news for altcoins?

After the Federal Reserve’s shift in policy on September 18th, Ethereum (ETH) has surpassed Bitcoin (BTC) in terms of performance. This superiority of ETH may indicate a stronger showing for altcoins during this period, leading to a decrease of about 2.5% in Bitcoin’s dominance.

Over the past week, meme-based cryptocurrencies demonstrated a significant surge, spearheading the overall market rebound. Notably, Shiba Inu [SHIB] emerged as the frontrunner in this recovery trend.

In the monthly performance rankings, it was Sui Network (SUI), Bittensor (TAO), and Popcat (POPCAT) that stood out, recording impressive returns of over 100% and even up to 300%.

Bitcoin dominance struggles at 58%: Good news for altcoins?

Currently, at this very moment, the Altcoin Season Index stands at 49, which is quite close to neutral and the highest it’s been since March. This highlights the exceptional growth of altcoins we witnessed last month.

Although many investors are already keen on altcoins, the creator of CryptoQuant mentioned that a significant shift of funds from Bitcoin to altcoins has not started in earnest yet.

The shift from Bitcoin to other cryptocurrencies (altcoins) hasn’t begun yet, but the support for purchases is growing more robust. I find the peaceful tranquility before a potential surge quite appealing.

Bitcoin dominance struggles at 58%: Good news for altcoins?

In simpler terms, the popularity of alternative cryptocurrencies (altcoins) was growing steadily and held promising prospects for investors. Consequently, when Bitcoin dipped in value, these periods offered a good chance to acquire more ‘affordable’ altcoins that have significant growth potential.

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2024-10-01 23:04