{"id":700,"date":"2024-10-17T08:00:19","date_gmt":"2024-10-17T08:00:19","guid":{"rendered":"https:\/\/coinsvalue.net\/blog\/bitcoin-dominance-hits-new-cycle-high-of-58-9-more-pain-before-altcoin-season\/"},"modified":"2024-10-17T08:00:19","modified_gmt":"2024-10-17T08:00:19","slug":"bitcoin-dominance-hits-new-cycle-high-of-58-9-more-pain-before-altcoin-season","status":"publish","type":"post","link":"https:\/\/coinsvalue.net\/blog\/bitcoin-dominance-hits-new-cycle-high-of-58-9-more-pain-before-altcoin-season\/","title":{"rendered":"Bitcoin Dominance Hits New Cycle High Of 58.9%, More Pain Before Altcoin Season?"},"content":{"rendered":"

As Bitcoin (BTC) inches closer to $70,000, its dominance in the wider crypto market has risen to a cycle high of 58.9%.<\/p>\n

Bitcoin Dominance Rises, Are Altcoins In Trouble?<\/h2>\n

Bitcoin dominance (BTC.D), a metric that measures the proportion of the total cryptocurrency market cap commanded by the leading digital asset, has hit<\/a> a new cycle high of 58.9%. The last time the crypto market witnessed this level of BTC.D was in April 2021.<\/p>\n

After a slight pullback following Iran\u2019s attack on Israel earlier this month, Bitcoin has risen by almost 10% in the past week, trading at $67,769 at the time of writing.\u00a0<\/p>\n

Concurrently, the total crypto market cap has surged from $2.26 trillion on October 8, to $2.41 trillion on October 16, according to data<\/a> from CoinGecko. However, the rise in the total crypto market cap is largely buoyed by the upward movement in BTC price.<\/p>\n

At the start of October, BTC.D hovered around 57.1%. Since then, it has risen by approximately 1.8%, showcasing Bitcoin\u2019s strong performance relative to altcoins such as Ethereum (ETH), Solana (SOL), Binance Coin (BNB), and others.<\/p>\n

The current level of BTC.D has cast doubt on the prospects for the much-anticipated \u201caltseason,\u201d typically characterized by parabolic price increases in altcoins and a decline in BTC.D. Notably, BTC.D peaked at 70% during the post-COVID bull market in 2020-21 before dropping to 40% by mid-2021.<\/p>\n

In late 2022, BTC.D bottomed out at around 39% amid the collapse of FTX, which halted operations due to fraud charges against its leadership. Since then, BTC.D has been on a gradual rise, as shown in the chart below.<\/p>\n

\"BTC.D\"<\/p>\n

ETH\/BTC Ratio Must Rebound For A Potential Altseason<\/h2>\n

As BTC.D continues to rise, it is important to consider the ETH\/BTC trading pair. For the uninitiated, the ETH\/BTC trading pair – colloquially known as the ETH\/BTC ratio – tracks Ethereum\u2019s (ETH) performance against BTC.<\/p>\n

At press time, ETH\/BTC trading pair stands at 0.0385, a level last seen in April 2021. The chart below shows that Ethereum has failed to establish a higher high against Bitcoin since at least November 2022, reflecting weak ETH price action over the past two years.<\/p>\n

\"ETHBTC\"<\/p>\n

A strong ETH performance against BTC often precedes an altseason, but there are no clear signs of a meaningful trend reversal.<\/p>\n

Further, the total value locked (TVL) in decentralized finance (DeFi) protocols across all blockchains has slid<\/a> from almost $110 billion in June 2024 to $88 billion, indicating weak demand for altcoins among crypto investors.<\/p>\n

However, some crypto analysts and technical indicators still suggest a potential altseason may be on the horizon.<\/p>\n

For example, earlier this month, the altcoin market cap surpassed its 200-day exponential moving average (EMA), a key resistance level that signals strong altcoin performance in recent days.<\/p>\n

Similarly, Steno Research recently remarked that ETH is set for a comeback following the US Federal Reserve (Fed) interest rate cuts. BTC trades at $67,769 at press time, up 2.5% in the past 24 hours.<\/p>\n

\"bitcoin\"<\/p>\n","protected":false},"excerpt":{"rendered":"

As Bitcoin (BTC) inches closer to $70,000, its dominance in the wider crypto market has risen to a cycle high of 58.9%. Bitcoin Dominance Rises, Are Altcoins In Trouble? Bitcoin dominance (BTC.D), a metric that measures the proportion of the total cryptocurrency market cap commanded by the leading digital asset, has hit a new cycle…<\/p>\n","protected":false},"author":1,"featured_media":701,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[94,465,56,466,55,61,467,62,36,95,65],"class_list":["post-700","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-altcoin","tag-altseason","tag-bitcoin","tag-bitcoin-dominance","tag-bitcoin-news","tag-btc","tag-btc-d","tag-btcusdt","tag-crypto","tag-cryptocurrency","tag-ethbtc"],"_links":{"self":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/comments?post=700"}],"version-history":[{"count":0,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/700\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media\/701"}],"wp:attachment":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media?parent=700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/categories?post=700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/tags?post=700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}