Bitcoin Dominates Crypto Market While Altcoin Values Plunge
Summary:
Bitcoin's market cap dominance has reached a three-year high at 56.3%, amidst altcoins facing a significant drop in value. The BTC to USD rate has decreased, however, altcoins experienced more substantial losses. Notably, despite the introduction of new altcoins in the market daily, Bitcoin has managed to reclaim a dominant share. Historically, Bitcoin bull markets have seen an increased dominance, which eventually gives way to altcoins during an extended consolidation period. Expert trader Mikybull Crypto predicts that altcoins are on the verge of major growth, similar to late 2020 when the BTC price surged beyond its previous trading range.
For the first time in three years, Bitcoin (BTC) holds a dominant 56.3% share of the total cryptocurrency market capitalization. This surge came amidst a drop in altcoin values, as per data from Cointelegraph Markets Pro and TradingView. The decline affected the leading twenty cryptocurrencies by market cap with losses exceeding 15%.
Simultaneously, the Bitcoin to USD rate also dropped, falling under $65,300 amidst liquidation over the weekend. The event has allowed Bitcoin to gain a more significant share in the crypto market, the highest since April 2021.
Despite the daily growth of new altcoins, popular trader and social media personality, Bagsy, shared his positive views on Bitcoin's current market behavior. Daan Crypto Trades, another known trader, commented on Bitcoin's minimal market hit compared to the more massive losses suffered by the altcoin sector.
Historically, Bitcoin bull markets usually record an increased dominance in the initial stages with altcoins gaining ground during an extended period of BTC/USD consolidation. However, as of 2024, altcoins have not yet experienced such circumstances for a substantial period.
Mikybull Crypto, an expert trader, hypothesises that a shift is imminent; altcoins' market cap is accurately following the former Alts season pattern, and the current dip is arguably the last before a significant uptrend. He compared this pattern with late 2020 when the BTC price had just begun exceeding its past macro trading range below $20,000.
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Published At
4/13/2024 7:38:24 PM
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