Bitcoin dominance hits 3-year high as BTC price drop puts pressure on altcoins.
Bitcoin (BTC) market cap dominance hits three-year high as altcoins feel renewed price pressure.
Data from Cointelegraph Markets Pro and TradingView show that on April 12, Bitcoin's share of the total crypto market capitalization rose to 56.3%.
Altcoins will see “real damage” due to BTC price loss.
BTC price action suffered over the weekend, bringing BTC/USD below $65,300.
However, at the same time, altcoins have experienced worse conditions, as the data shows – many of the twenty major currencies have fallen by more than 15% in market capitalization.
In doing so, altcoins have relinquished crypto market share to Bitcoin, and recent highs indicate the most “Bitcoin-heavy” crypto market since April 2021.
“Normally I don't see Bitcoin dominating, but considering the amount of new altcoins entering the market every day, the chart is amazing,” Bagisi, a prominent trader and social media analyst, wrote in a response on X (formerly Twitter).
Fellow trader Daan Crypto Trades was among those who pointed out the narrowing gap between Bitcoin and altcoins in recent days.
“Yeah, the actual damage to $BTC was minimal and the overall damage wasn't very significant,” he told his X followers about Bitcoin's open interest.
“The real damage has been to the altcoin sector, which has wiped out billions in open interest and made up to a 50% wick.”
“Altseason” hopes to stay in the game
Bitcoin bull markets are likely to dominate their early stages of history, altcoins will then rally after BTC/USD sees an extended period of consolidation.
Related: Bitcoin is a hedge against ‘terrible' government fiscal policy – Catie Wood
So far in 2024, altcoins, while performing well, have not seen such conditions for a meaningful length of time.
However, predicting what might come next, another trader, Mikibul, argued that a crypto revolution is coming soon.
“Altcoins market value is closely following Alts previous season levels,” he wrote in part in X's post.
“This coupled with Bitcoin's dominant downward trend is the last shock before an explosive eruption to the upside.”
The accompanying chart compares the dominance of Bitcoin and altcoins, drawing a comparison to the end of 2020 – the point where BTC's price action slipped below $20,000 in the previous macro trade.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
