Is Bitcoin's Market Dominance Waning? Altcoins Could See Surge Amid Investor Shift
Summary:
Crypto experts suggest Bitcoin's dominance in the market has peaked, as investors shift their focus to altcoins. While Bitcoin's market dominance has dipped slightly, altcoins are reportedly beginning to react in their Bitcoin pairs, indicating the start of a new rotation. This shift has led some to anticipate an impending altcoin market surge. Nonetheless, current market sentiment shows rising fear levels that could prompt investors to reallocate funds back into Bitcoin.
The portion of the crypto market claimed by Bitcoin (BTC) appears to have dipped slightly, prompting crypto experts to argue that its peak may have been reached as investors turn their gaze towards altcoins. Michaël van de Poppe, who heads the MNTrading firm, purported that Bitcoin's dominance may have topped out, as shown in his May 1 X post, further elaborating that altcoins are likely at their lowest. He informed that altcoins are beginning to react in relation to their Bitcoin counterparts, indicating a commencement of rotation. A dent in Bitcoin's dominance suggests an impending altcoin market surge to market participants, as investment diverts from Bitcoin -- the cryptocurrency market’s more dependable value store -- to altcoins, known for their greater price instability. Bitcoin's foothold appears to be losing major support, stated crypto trader Matthew Hyland, while stating his intent to ascertain the alleged "breakdown" after monitoring the weekly close. As per data from TradingView, Bitcoin's dominance -- its contribution to the total cryptocurrency market capitalization -- stands at 53.90%, down 1.75% over the last week but still experiencing a 4.63% growth since the year’s commencement. Bitcoin’s dominance reached its annual peak on April 14 at 56.42. Altcoins could seize the opportunity if the price continues to fluctuate in the forthcoming months, said the IncomeSharks trading team in a May 1 X post. At 2.76%, 3.04%, and 3.25% respectively, Solana (SOL), PEPE (PEPE), and Dogwifhat (WIF) have seen small gains over 24 hours, revealed CoinMarketCap data. The 10.44% seven-day price drop of Bitcoin corresponds with its decreasing market share. Its price has fallen 4.89% in the last day alone. However, there is increasing skepticism regarding the claim of Bitcoin’s dominance having peaked as current market sentiment indicates growing levels of fear. This uncertainty may prompt investors to reallocate their investments back into Bitcoin over precarious crypto assets. As per the Crypto Fear and Greed Index, May 1 marked the peak in investor fear for the year in the crypto market. The index score, a representation of market sentiment, dropped to "fear" level 43 on May 1 from the previous day's "neutral" score of 54. Disclaimer: This article is not a source of investment advice. Investments and trading entail risk and require independent and thorough research prior to decision making.
Published At
5/2/2024 8:53:47 AM
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