Recent changes in the cryptocurrency market indicate a decrease in Bitcoin (BTC) dominance and a strengthening of altcoins. This article reviews data on BTC dominance, the impact of major altcoins, and the short-term outlook for altcoins.
Dynamics of Bitcoin's Dominance
At its peak, BTC dominance reached 63%, but over the past week, this figure has declined to 61.6% according to Coingecko data. This drop occurred as ETH and other top altcoins gained strength. The altcoin season index rose from 25 to 36 points since June, indicating a shift away from a fully Bitcoin-dominated period.
Impact of Major Altcoins
42 out of 56 large-cap altcoins outperformed BTC in the last month, signaling a potential return to a modified altcoin market. ETH has proven its key role in DeFi and stablecoin activity, showing recovery from recent lows. Meanwhile, several meme tokens have also seen substantial increases.
Short-Term Outlook for Altcoins
Despite enthusiasm for altcoins, full seasons may be short-lived. Historically, peak altcoin seasons last from 4 to 8 weeks. Currently, most crypto assets remain neutral on the relative strength index, indicating that the upcoming altcoin season may account for real-world applications and platform activity.
The current state of the cryptocurrency market demonstrates a significant shift in the dynamics between BTC and altcoins. While BTC dominance has decreased, there are signs of increased interest in altcoins, which may lead to a potential recovery of these assets.
