Glassnode data shows Bitcoin's dominance increased after the FTX collapse in 2022, as investors favored it over other digital assets.
FTX's Impact on Bitcoin Growth
According to Glassnode, Bitcoin's dominance surged from 38% to 58% since FTX's collapse in late 2022. Bitcoin's market cap increased 5.3x, reaching $1.9 trillion, outpacing altcoins, which grew 4.7x to $892 billion.
Correlation Between Bitcoin and Altcoins
Despite Bitcoin's growth, it remains highly correlated with altcoins. The key driver, according to analysts, is significant capital inflows into Bitcoin. Retail holders accumulating during market corrections have stabilized the Bitcoin cycle.
Future of Altcoins and Capital Rotation
While Bitcoin's dominance is rising, some experts believe a switch to an 'altcoin season' may occur. Analyst Rekt Capital and others suggest altcoins might soon outperform Bitcoin.
Economic factors and political decisions continue to shape the cryptocurrency landscape. Despite Bitcoin's current dominance, analysts foresee a potential trend shift in favor of altcoins.
