Ever since Bitcoin broke out of the lowest bear market trading range where its yearly lows were set, the crypto asset has skyrocketed, reaching prices not seen since before the bear market began in 2018.
Alongside Bitcoin price itself, the crypto asset’s dominance comparative to other assets in the crypto market – altcoins such as Ethereum, Ripple, and Litecoin – has also grown to levels not seen since the previous bull run. In the past, the divergence eventually corrects, triggering an alt season. But this time around sentiment around altcoins are at an all time low, and because institutions may be focusing on Bitcoin or other factors, dominance may continue to rise at the expense of any remaining altcoin value. What happens next for altcoins and Bitcoin dominance?
Bitcoin Dominance Revisits Previous Bull Market Levels
Earlier this week, Bitcoin price broke above $10,000 and is already close to an attempt at $14,000 as the time of this writing.Related Reading | Bubble Hasn’t Begun: Google Trends Shows Little Interest in $10,000 Bitcoin
Alongside Bitcoin price rising, so has . The crypto market health metric broke above 60% earlier this week, and is now just below 63.5% – a level where some altcoin focused crypto analysts say could be an area where a strong bounce occurs.
Top Ten Crypto Time Hop Shows Altcoin Sentiment Change
This new high in BTC dominance is a level not seen since the fabled 2017 bull run where Bitcoin reached $20,000, set its all-time high, and caused widespread FOMO into the crypto market by retail investors who bought into altcoins hoping to find the next Bitcoin.
Bitcoin dominance approaches its highest level since Dec 2017. — Spencer Noon 🕛 (@spencernoon)The divergence may be due to this rally being driven by “smart money” institutions instead of the retail investing public. Institutions may be focusing on Bitcoin due to it having the most promise and regulatory support. Or, maybe people have realized that there will never again be another Bitcoin.
Related Reading | Crypto Diverges: Bitcoin Dominance at 60%, Altcoins Face Major Capitulation Event
Whatever the reason, there are critical times ahead for altcoins. They either finally provide investors the alt season they’ve been waiting for and skyrocket relative to Bitcoin, finally catching up – or, they continue to bleed out and suffer the major capitulation event some analysts are calling for.
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