Cryptocurrency analyst Simeon Koch drew attention to Bitcoin's market dominance in his assessment and warned about the upcoming altcoin season. According to Koch, for altcoin seasons to begin, Bitcoin’s market dominance rate must first reach a cycle peak. This rate peaked at around 70% in previous bull markets. It is currently around 66% and is trending upward. The US attack on Iran’s nuclear facilities over the weekend has raised tensions in the Middle East. US President Donald Trump described the operation as a “complete success”, while the Iranian government reacted by accusing the US of crossing red lines and declaring that all US bases in the region were potential targets. Iran also threatened to halt maritime traffic in the Strait of Hormuz. These developments increased the perception of risk in financial markets. As in traditional crisis periods, investors turned to safe havens (gold, oil, and in this case Bitcoin) instead of risky assets (such as altcoins). This increased Bitcoin's market dominance, reaching 66%, the highest level in recent years. This increase is considered the biggest obstacle to the start of the altcoin season. However, Iran subsequently hit the US base in Qatar with prior notice and reduced tensions. Bitcoin dominance is the ratio between the market value of Bitcoin and the total value of the entire cryptocurrency market. When this ratio increases, it means that the vast majority of investors are holding their money in Bitcoin. When it decreases, capital is shifting towards altcoins. This shift is seen as one of the main signs of altcoin season. “Bitcoin dominance usually peaks towards the end of bull cycles and then declines. Along with this decline, altcoins experience sudden and sharp increases,” said analyst Simeon Koch. However, he added that this period carries serious risks despite the high profit potential. Related News: BREAKING: Coinbase Announces It Will List a New Surprise Altcoin Koch stated that technical indicators show that a peak formation is approaching in Bitcoin dominance. Indicators such as RSI (Relative Strength Index) are in the overbought region. In addition, the inverse correlation of the global liquidity index also indicates that there may be a decrease in dominance in the near future. If this scenario occurs, it is stated that the altcoin season may begin with the capital rotation shifting to altcoins. According to the analyst, when past cycles are examined, it is seen that the altcoin season usually begins in periods when Bitcoin dominance has been continuously falling for several weeks or months. During these periods, major altcoins such as Ethereum, Solana, XRP outperform Bitcoin, indicating that investors' risk appetite has increased. Tools like the Altcoin Season Index are also used to track this. This index indicates that an altcoin season has begun if 75% of the largest altcoins have risen more than Bitcoin over the last 90 days. The Altcoin Season Index currently sits at 16, indicating Bitcoin’s continued dominance. Koch noted that altcoin season is the period when the highest gains are seen in the crypto market, but also carries the highest risks: “Investors may want to get on the track when the music is playing loudest. But it is also necessary to see the exit in time. The altcoin season ends at its peak, and a severe bear market may follow immediately.” *This is not investment advice. Continue Reading: Here’s the Current Status of the Altcoin Season Index – Analyst Takes an In-Depth Look at Potential Altcoin Bull Run
