Bitcoin’s market dominance has been increasing and recently hit its highest point since April 2021, reaching 57.4%. However, well-known crypto analyst EGRAG Crypto believes this upward trend might be slowing, potentially leading to altcoin growth.
Bitcoin Surge or Breakdown?
EGRAG Crypto’s analysis is based on observing Bitcoin’s dominance chart, which shows how much of the total cryptocurrency market Bitcoin represents. According to EGRAG, a close above 58% on the monthly chart would be a strong bullish signal, suggesting that Bitcoin could soon capture an even larger share of the market, potentially reaching dominance levels as high as 73%. However, the current formation on the chart is a rising wedge pattern, often indicating a potential bearish reversal. If this pattern plays out, Bitcoin’s dominance might not continue its upward trend and could experience a significant drop, reaching as low as 39%.
What Does This Mean for Altcoins?
A decrease in Bitcoin’s dominance could be a boom for altcoins. When Bitcoin’s market share decreases, it often indicates that investors are putting more money into altcoins. Although, the altcoin market has faced tough times recently, things are starting to look up.
Regulatory Changes and Outlook
Recent changes in U.S. regulations are making it easier for altcoins to thrive. Major cryptocurrencies like Ethereum and Solana have received clearer regulatory guidance, also XRP being labeled as a commodity has lifted some of the burdens holding the market back. These positive developments could be the start of a strong altcoin season.
Thus, a possible slowdown in Bitcoin’s dominance could pave the way for altcoin growth, especially considering recent regulatory changes that are fostering their development in the market.
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