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- Bitcoin’s market dominance has reached 60%, sparking speculation about a potential altcoin rally in the coming months.
- Analysts note that altcoins historically gain value after Bitcoin peaks, mirroring past bull market patterns.
- The 60% dominance level is a critical resistance point, where Bitcoin’s market share often sees reversals.
Bitcoin’s market dominance has surged to 60%, a level not seen in several years. This milestone has raised anticipation among analysts about the potential for a new “alt season.” Historically, Bitcoin’s dominance often plays a crucial role in shaping the performance of the broader cryptocurrency market, especially altcoins.
Bitcoin dominance is staggering—60% of the entire crypto market.
[Remember that number]
But what does that mean for altcoins? Listen to why the next big shift might be just around the corner. 👇 pic.twitter.com/T2V4CTypU2— Lizard Labs (Ethlizards) 🦎 (@LizLabsio) November 12, 2024
Altcoin Performance Stalls as Bitcoin Grows
Notably, analysts have noticed that as Bitcoin claims a larger share of the crypto market, altcoins have struggled to gain momentum. While Bitcoin’s recent increase in market share coincides with renewed institutional interest, many altcoins remain undervalued.
Over the past few months, altcoins like Cardano and Algorand have yet to replicate the gains seen during previous bull cycles. This trend mirrors past market behaviors, where altcoins typically rallied only after Bitcoin reached specific price peaks.
Moreover, during the bull run of 2021, several altcoins experienced significant price surges following Bitcoin’s all-time high. Cardano, for instance, saw its market cap skyrocket from $6 billion to $37 billion in a matter of months.
Additionally, Dogecoin had a similar rapid rise, gaining momentum after Bitcoin’s peak. These historical trends have encouraged market analysts to consider whether a comparable altcoin surge could soon take place if Bitcoin’s dominance begins to decline.
Key Resistance Level Draws Attention
Furthermore, crypto analysts are closely monitoring Bitcoin’s current dominance level. Market watchers have identified the 60% threshold as a critical resistance point. In past cycles, Bitcoin’s dominance often stalled at this mark, which sometimes preceded a reversal.
According to CryptoBullet, a prominent market analyst, Bitcoin may need to break its all-time high to pave the way for an altcoin rally. If this occurs, altcoins could outperform, mirroring trends from previous cycles.
Meanwhile, Sensei, another respected analyst, emphasized that Bitcoin’s dominance might not hold. He highlighted the potential for a reversal if the 60% resistance proves too strong. Should this happen, analysts believe altcoins could experience a rally lasting several months, possibly beginning in November and extending into early 2025.
Institutional Interest and Market Dynamics
More so, institutional investment in Bitcoin remains a key driver behind its dominance. However, this hasn’t translated into significant gains for altcoins. Despite the growing interest in cryptocurrencies as an asset class, altcoins have not attracted the same level of institutional backing.
Hence, this disparity has contributed to Bitcoin’s increasing share of market capital. Yet, market participants remain optimistic. They believe that as Bitcoin stabilizes, altcoins may have the opportunity to catch up.