Bitcoin has been the dominant crypto asset in the recent market cycles, receiving the largest amount of capital. As of the date this article was written, Bitcoin’s dominance The market as a whole is up by 4% in 24 hours to 60.3%. Rekt Capital is a notable crypto analyst pointed to The 71% dominance threshold as an important threshold still for crypto investors awaiting an altcoin season.
Altcoins Need to Reach 71% for a Successful Season
Bitcoin dominance charts, which track Bitcoin’s capitalization relative to the crypto market as a whole, have consistently risen throughout This cycle will continue to occur, even when there are price fluctuations. Bitcoin has dominated the market. fueled by institutional demand After the launch of Spot Bitcoin Exchange Traded Funds, and after market dynamics that favor BTC as potential reserves for countries.
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This prolonged Bitcoin dominance is a direct cause of the slow performance of altcoins. While some altcoins such as Solana or XRP are performing well, others like Solana have not. managed to outperform Bitcoin For short periods of time, capital was consistently redirected back to Bitcoin. This prevented a sustained breakout in the altcoin markets. Some analysts, however, believe that a major shift is very near, as Bitcoin’s dominance has now reached a multiyear high.
Rekt capital is a social media analyst on the platform X. The analysis revealed a historic pattern in which altcoin seasons appear whenever Bitcoin dominates a certain threshold, and then faces rejection.
A Bitcoin dominance graph that accompanied the analysis showed that Bitcoin’s dominance was rejected three times consecutively at around 71%. Each rejection was marked by the dominance of Bitcoin falling across multiple monthly candles as altcoins performed better than Bitcoin during those months.
Most recently, this pattern occurred during the bull run of 2021. At that time, Bitcoin’s dominance spiked briefly above 72%. It then reversed its course. It entered a downward trend for five months after being rejected. The market eventually stabilized around the 40% mark as altcoins gained control.
Can 71% trigger a New Altcoin Session?
Bitcoin’s dominance has not yet reached 71%, but it continues to steadily climb towards that level. Bitcoin dominates the market at 60.3%. This trend is not slowing. Investors who are banking on the rejection of 71% may have to wait for a longer time before dominance reaches this level.
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Historical patterns indicate that altcoins may experience rapid growth if the dominance of 71% becomes localized again. Ethereum is unlikely to lead the altcoin market this year, as it has in past cycles. The top altcoin has struggled to gain This cycle has gained momentum as the recent dynamics of the market have reduced its dominance compared to altcoins such as XRP and Solana. and Dogecoin, The crypto market is gaining more attention from traders.
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Source: www.newsbtc.com
