Bitcoin Market Dominance Shows Signs of Easing Hinting Potential Altcoin Season
It is still too soon to say if the easing of Bitcoin’s hold on the $4 trillion cryptocurrency market will result in a prolonged period of momentum for altcoins, according to experts in the industry.
Altcoin Rally Gains Momentum
Several analysts believe that a so-called altcoin season cannot begin unless there is a trend reversal with Bitcoin’s so-called supremacy, even if the price of several altcoins is soaring.
On Friday, Bitcoin held around 61% of the market, with a valuation of $2.3 trillion, as reported by CoinGecko. Among the 17,000 cryptocurrencies monitored by the crypto data source, the asset’s market value reached 65.5% last month.
This decline follows a week in which Ethereum‘s price increased 20% to $3,600 and XRP‘s price increased 23% to $3.46, with the latter reaching a new all-time high. Memecoins, such as Floki based on Ethereum and Bonk based on Solana, have also seen price increases of more than 45 percent.
After Bitcoin’s price peaks in prior market cycles, altcoins tend to show strength as well. As the bull market continues, traders are reportedly seeking larger profits by shifting their focus to more volatile assets. But things have changed in the cryptocurrency sector recently.
This encompasses the introduction of spot Bitcoin ETFs in the US, a product that prevents individual and institutional investors from accessing any other on-chain asset. According to analysts, if the Federal Reserve were to decrease interest rates later this year, it would infuse liquidity into the market and set the stage for an altcoin season.
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Bitcoin Market Dominance Shows Signs of Easing Hinting Potential Altcoin Season
It is still too soon to say if the easing of Bitcoin’s hold on the $4 trillion cryptocurrency market will result in a prolonged period of momentum for altcoins, according to experts in the industry.
Altcoin Rally Gains Momentum
Several analysts believe that a so-called altcoin season cannot begin unless there is a trend reversal with Bitcoin’s so-called supremacy, even if the price of several altcoins is soaring.
On Friday, Bitcoin held around 61% of the market, with a valuation of $2.3 trillion, as reported by CoinGecko. Among the 17,000 cryptocurrencies monitored by the crypto data source, the asset’s market value reached 65.5% last month.
This decline follows a week in which Ethereum‘s price increased 20% to $3,600 and XRP‘s price increased 23% to $3.46, with the latter reaching a new all-time high. Memecoins, such as Floki based on Ethereum and Bonk based on Solana, have also seen price increases of more than 45 percent.
After Bitcoin’s price peaks in prior market cycles, altcoins tend to show strength as well. As the bull market continues, traders are reportedly seeking larger profits by shifting their focus to more volatile assets. But things have changed in the cryptocurrency sector recently.
This encompasses the introduction of spot Bitcoin ETFs in the US, a product that prevents individual and institutional investors from accessing any other on-chain asset. According to analysts, if the Federal Reserve were to decrease interest rates later this year, it would infuse liquidity into the market and set the stage for an altcoin season.
Read More