Recent analytical insights reveal that altcoins continue to experience significant growth, despite Bitcoin's strong dominance at 64.5%. Analyzing the situation suggests a potential upcoming altcoin season.
Altcoin Growth Amid Bitcoin Dominance
Analyst Matthew Hyland noted that altcoins are on the rise while Bitcoin's dominance remains stable. 'BTC dominance hasn’t even sneezed,' he mentioned in a post, questioning what might happen if that figure falls from 65% to 45%.
Analysts' Predictions for the Altcoin Market
Historically, a sharp drop in Bitcoin dominance signals the onset of an altcoin season, as capital begins to rotate into the broader market. Currently, altcoins such as MemeCore (M), Mog Coin (MOG), and Stellar (XLM) have shown substantial weekly gains of 1,263%, 75%, and 67%, respectively. Ethereum (ETH) has also increased by nearly 18% over the week, indicating that altcoins may start outperforming Bitcoin.
Market Status and Future Scenarios
Despite the positive trends, the market hasn't fully transitioned. CoinMarketCap’s Altcoin Season Index shows a reading of 29 out of 100, indicating that the market is still in 'Bitcoin Season'. However, analyst Michael van de Poppe suggested that the market is approaching what could be the 'final easy and biggest bull ever' for altcoins. Market intelligence firm Santiment reported data indicating the early stages of a shift, provided Bitcoin remains above $110,000.
Thus, the current market situation suggests potential for altcoin growth, even with Bitcoin's steady dominance. Significant changes in market dynamics are anticipated in the coming weeks.
