Crypto analyst Crypto Daan has evaluated the current state of Bitcoin dominance and the altcoin market, presenting two possible scenarios for future growth.
Current Situation of Bitcoin Dominance
According to the analyst, Bitcoin dominance has peaked in the current cycle, and further increases could create good entry opportunities for strong altcoins against BTC. Daan expects a temporary surge in Bitcoin dominance in the short term.
Prospects for Altcoins
The analyst noted that for the market to progress healthily, it's crucial for Bitcoin to lead the way out of consolidations. If altcoins gain value simultaneously while Bitcoin rises, this will provide short-term gains for investors but make the rally less sustainable.
Analyst's Personal Opinion
Daan also discussed his portfolio allocation, explaining that he currently holds 50% of his assets in Bitcoin and 50% in altcoins. He considers this balance healthy for the current phase of the cycle and encourages investors to determine their own strategies based on their risk appetite.
Crypto Daan's analysis provides insight into current trends in the cryptocurrency market, highlighting Bitcoin's influence on altcoins and the importance of sound asset allocation.
