CoinInsight360.com logo CoinInsight360.com logo
A company that is changing the way the world mines bitcoin

WallStreet Forex Robot 3.0
BitcoinSistemi 2025-02-28 18:39:08

Bitcoin Dominance Peaks: What Does It Mean for Altcoin Season?

Bitcoin’s share of the cryptocurrency market has surged to its highest level in four years, reflecting a shift toward safety among investors. The world’s largest cryptocurrency now accounts for more than 60% of the $2.9 trillion digital asset market, marking the highest BTC dominance since February 2021. Market analysts attribute Bitcoin’s growing dominance to a broader risk-off sentiment in the crypto space. Mike Cahill, director of Pyth Data Association, said the rise in Bitcoin dominance signals a cautious environment where investors are opting for the relative stability of Bitcoin over speculative assets. “When liquidity is concentrated in Bitcoin, it is usually a sign of a cautious market that expects stronger persuasion in riskier assets,” Cahill said. This trend suggests that expectations of a widespread “alt season” similar to the rally in late 2021 may not be realized. During that time, Bitcoin’s dominance waned while almost all cryptocurrencies made significant gains. However, in the current market, only a select group of altcoins have a high correlation with Bitcoin, suggesting a more selective altcoin rally. Related News: Historic Bitcoin Move from BlackRock: They're Adding BTC to Their Model Portfolio - What Does It Mean? During the “DeFi summer” between mid-2021 and late 2022, Bitcoin’s market share fell by as much as 40% as investors flocked to decentralized finance (DeFi) projects. However, the crash of key tokens like Terra (LUNA) in 2022, wiping $40 billion off the market, marked the beginning of a bearish trend for speculative assets. “A lot of people have been hurt and disappointed by altcoins,” said Jameson Lopp, CTO of crypto custody firm Casa, noting that many investors now view the crypto market as “a huge risk” and have either exited completely or moved to Bitcoin. One of the key drivers behind Bitcoin’s growing dominance is institutional adoption. Since the launch of Bitcoin exchange-traded funds (ETFs) on Wall Street in January 2024, institutional investors have been increasing their exposure to Bitcoin through sophisticated risk and arbitrage strategies. “Bitcoin is trading on a macro scale compared to other cryptocurrencies,” said Greg Magadini, Director of Derivatives at Amberdata. *This is not investment advice. Continue Reading: Bitcoin Dominance Peaks: What Does It Mean for Altcoin Season?

Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.