Alt season on the way? Bitcoin dominance at months low
Altcoins are coming to the fore as Bitcoin recovers from all-time highs. Does this mean an alt season?
Bitcoin (BTC) now accounts for less than 60 percent of the total market capitalisation of all cryptocurrencies. This points to „Alt Season 2.0“.
In a tweet on 29 March, analyst Filbfilb, co-founder of trading suite Decentrader, said conditions are finally right for another altcoin surge. In the process, total market capitalisation has Bitcoin Future reached new highs of nearly $750 billion.
Bitcoin dominance at lowest level since October 2020
Filbfilb pointed to the current BTC/USD spot rate, the combined altcoin market capitalisation in US dollars and the dominance of bitcoin market capitalisation, summarising the state of the market positively.
„Alt szn,“ was all he commented. This is an abbreviation for the term alt season, which describes the situation when altcoins rise while bitcoin cools down or consolidates after a price rise.
The „alt season“ has been a full three years in the making. As Cointelegraph reports, expectations of an altcoin upswing were high for a long time, but ultimately did not materialise.
Now, however, as Bitcoin consolidates after hitting an all-time high of $61,700, this is playing into traders‘ hands.
At press time, Bitcoin’s market capitalisation was at 59.4 per cent, its lowest level since late October 2020.
Currently, Visa in particular is driving this trend. On Monday, the company announced that it would accept the stablecoin USD Coin (USDC) for settlement, using the Ethereum blockchain. The ETH/USD pair saw a modest 4.8 percent increase in response. However, the market cap share of Ether (ETH), the largest altcoin, was still rather low compared to January.
Cointelegraph analyst Michaël van de Poppe describes the current state of the market as a „very bullish“ summer for altcoins, especially as the market cap has reached new highs and is close to $750 billion.
„Ethereum will massively surprise everyone,“ he wrote of the Visa announcement.
Previous price forecasts had said the ETH/USD pair would rise to US$5,000 and even US$10,000 in the medium term.
„The altcoins are making a great impression,“ added analyst Scott Melker.
Bottom for BTC?
For Bitcoin, bullish signs were limited on Monday. The market ran into resistance at February’s all-time highs at US$58,300.
Intraday activity was nonetheless strong. The pair gained over 4 percent in the last 24 hours.
Market participants are still divided on whether last week’s rally at the US$50,000 level represents a definitive bottom in the current consolidation phase.
„It could very well be that the BTC bottom has been reached,“ estimated Twitter trader Rekt Capital on Monday.