Altcoins to Rally After Bitcoin Breakaway: Here’s Why

After the asset attempted to break above $71,000, Bitcoin's dominance increased to 52% on some sources but failed, and is currently below $70,000 as of Thursday (March 28).

Altcoins have experienced a further rebound, increasingly dominated by BTC. As CryptoPotato reports, Ethereum (ETH) and other leading altcoins have taken $50 billion from the cryptocurrency market cap, which fell below $2.8 trillion.

As altcoins bleed, bitcoin's halving could reduce the asset's dominance, market observers say. One of them is analyst Michael van de Pop, who stated that BTC's decline in dominance could set a new bullish path for altcoins.

#Bitcoin's supremacy may begin to fall sharply after the reduction.

The price of $BTC is very low for altcoins, hence why there is so much interest in buying them. pic.twitter.com/8eDWKBmGXZ

— Michael Van de Pop (@CryptoMichNL) March 27, 2024

Van de Pop's analysis emphasizes Bitcoin's role as a leading indicator of the broader cryptocurrency market. Notable market behavior shows that altcoins tend to rally after BTC makes significant gains, which can be reversed even as retail and venture capital low prices spiral into them.

BTC's hegemony is arriving in early 2021, according to CoinCodex data. Similarly, in its latest report, Grayscale showed the market conditions where BTC's increasing dominance has resulted in a rally for altcoins. Despite BTC's recent price volatility, there is still hope for a new ATH before the upcoming April halving.

Additionally, market watchers believe BTC's bullish momentum could squeeze short traders, while the underlying asset could reach a “conservative” price of over $100K.