Bitcoin and many other cryptocurrencies have seen significant price increases in recent weeks. Bitcoin, in particular, has inched closer to its all-time high, and the recent break above $68,000 puts it up just 8%. far from setting a new price record.
Interestingly, this entry into Bitcoin has seen the cryptocurrency increase its dominance over altcoins. According to the data, Bitcoin’s market dominance is now 65% of the total market capitalization, the highest in three years. This raises the question of whether the altcoin season will continue to materialize in the current market cycle.
Bitcoin Leaves Ethereum and Other Altcoins in the Dust
According to data from on the blockBitcoin recently reached 65% market dominance, which is the highest on record for the metric during the 2021 bull rally. During that period, Bitcoin captured the majority of investments before eventually ceding some of its dominance to Ethereum and other altcoins in mid-2021.
Interestingly, the crypto landscape has changed substantially since then, and Bitcoin has now found a footing among institutional investors. As such, the recent inflows into Bitcoin and its dominance can be attributed to the Bitcoin Spot ETF inflows.
According flow data SoSoValue, Bitcoin-based spot ETFs in the United States saw notable performance last week. These ETFs saw steady inflows every day, culminating in a net inflow of $2.13 billion, the largest since the third week of March.
This is good news for ardent Bitcoin investors and advocates, but not for investors betting on Ethereum’s outperformance. One of those investors is crypto millionaire James Fickel, which has lost substantial amounts more than $43 million, due to his high-risk bet that Ethereum would surpass Bitcoin in 2024.
Altcoin season will materialize in six months
As Bitcoin continues to consolidate its dominance, the potential for a new altcoin season becomes increasingly uncertain. current data of The Altcoin Season Index shows a reading of 31, significantly below the threshold of 75, which typically indicates the start of an altcoin season.
Despite this cautious outlook, crypto analyst Ash Crypto offers a more optimistic outlook for an altcoin season. According to him, the altcoin season will begin in the next six months. In a recent social network mail Shared with his 1.2 million followers on
Drawing on insights gained during the previous market cycle, Ash Crypto noted that the altcoin market outperformed Bitcoin for about five months in 2021, just after Bitcoin dominance hit an all-time high.
At the time of writing, Bitcoin is trading at $68,400.
Featured image from Experian, TradingView chart
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