The situation in the cryptocurrency market raises questions about the future of altcoins. Bitcoin continues to hold its dominant position while alternative tokens face challenges.
Bitcoin Dominance
Since the beginning of the year, Bitcoin dominance has surpassed 60%, even flirting with 65%. This is explained by support from the famous Bull Market Support Band (BMSB), which helps Bitcoin sustain its high levels. Analyst Luca notes that as long as Bitcoin dominance holds its support, the risks of a downturn remain minimal.
Reasons for Altcoin Silence
Altcoins continue to wait for their moment, but the lack of incoming capital creates hurdles for growth. Over the past year, over 36 billion dollars have been withdrawn from altcoins. Market participants, particularly institutional investors, increasingly favor Bitcoin, shying away from tokens deemed too risky.
Future of Altcoins
Despite current difficulties, weak signals about a possible altcoin renaissance are emerging. Some analysts suggest that the possibility for growth still exists, provided altcoins act independently of Bitcoin and attract more investments through innovative initiatives.
Despite serious challenges, altcoins should not be written off entirely. The cryptocurrency market remains unpredictable, and changes can occur at any moment.
