Fun

Why The Bitcoin Dominance Reaching 71% Is Important For Altcoin Season To Begin

News Feed - 2025-02-07 09:02:33

Este artículo también está disponible en español.


Bitcoin continued dominance has remained a defining feature of the current market cycle, with the leading crypto asset receiving most of the inflows into the market. At the time of writing, Bitcoin’s dominanceover the entire market is at 60.3% after a 4% increase in the past 24 hours. Notably, crypto analyst Rekt Capital pointed tothe 71% dominance level as an important threshold for crypto investors still awaiting an altcoin season. Reaching 71% Is Critical For An Altcoin Season


The Bitcoin dominance chart, which tracks Bitcoin’s market capitalization in relation to the entire crypto market, has consistently risen throughoutthis cycle, even during periods of price corrections. Bitcoin’s dominance has been fueled by institutional demandafter the introduction of Spot Bitcoin ETFs and market dynamics favoring BTC as a potential reserve for countries.  Related Reading Why The Bitcoin Dominance Reaching 71% Is Important For Altcoin Season To Begin 12 minutes ago


A direct consequence of this prolonged Bitcoin dominance has been the sluggish performance of the altcoin market. Although some altcoins like Solana and XRP have managed to outperform Bitcoinfor brief periods, the capital has consistently rotated back into Bitcoin, preventing a sustained altcoin market breakout. However, some analysts believe a significant shift could be very close, with Bitcoin dominance now sitting at a multi-year high.


One such analyst is an analyst known as Rekt Capital on social media platform X. His analysis reveals a historical pattern where altcoin seasons emerge whenever Bitcoin dominance reaches a key threshold and subsequently faces rejection. BTC’s rising dominance vital for altcoin season | Source: Rekt Capital on X


According to a Bitcoin dominance chart that accompanied his analysis, Bitcoin’s dominance has been rejected around the 71% level three successive times in the past. Interestingly, each rejection has been marked by Bitcoin’s dominance falling over multiple monthly candles, as altcoins outperformed Bitcoin throughout those months. 


The most recent occurrence of this pattern was during the 2021 bull market. At the time, Bitcoin dominance briefly spiked above 72% before reversing course. Once rejected, it entered a five-month downtrend, ultimately stabilizing around the 40% level as altcoins took control of the market. Will 71% Trigger A New Altcoin Season?


Although Bitcoin’s dominance is not at 71% yet, it is still steadily inching upward towards this level. Particularly, Bitcoin’s dominance is at 60.3%, and there are no signs of slowing down. This means that investors banking on a repeat of rejection around 71% might have to wait longer for the dominance to even reach this level. Related Reading Bitcoin Forms First Daily Death Cross On Dominance Chart In 4 Years, What To Expect Next 1 month ago


If the 71% dominance level eventually becomes a local top again, historical patterns suggest altcoins could experience rapid gains. However, unlike in previous cycles, Ethereum may not take the lead in an altcoin season this time around. The leading altcoin has struggled to gainmomentum this cycle as recent market dynamics have diminished its dominance in relation to other altcoins like XRP, Solana, and Dogecoin,which are witnessing more interest among crypto traders. BTC trading at $98,731 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from LinkedIn, chart from Tradingview.com

News Feed

‘Self-Custody Should Mean the Ownership of Everything About You’ Says Sharering’s Tim Bos
"Self-Custody Should Mean the Ownership of Everything About You" Says Sharering"s Tim Bos According to Sharering, a blockchain-based platform enabling the creation and use of ̶
Brayden Lindrea4 hours agoVitalik Buterin: AI may surpass humans as the ‘apex species’“Even Mars may not be safe” if superintelligent AI turns against humanity, warns Ethereum co-founder Vitalik Buterin.3171 Tota
Hong Kong’s in-kind ETF creation could be a significant market opportunity: Analysts
Zoltan Vardai10 hours agoHong Kong’s in-kind ETF creation could be a significant market opportunity: AnalystsHong Kong aims to enable in-kind creations and redemptions for spot Bitcoin ETFs in the second quarter.1743 T
CropBytes Games Celebrates a Milestone Unheard of, ‘4 Years of Sustainable Web3 Gaming’
CropBytes Games Celebrates a Milestone Unheard of, ‘4 Years of Sustainable Web3 Gaming’ press release PRESS RELEASE.For a gaming community to complete 4 years in the crypto gami
South Korean Court Orders Bithumb to Compensate Users for an Accidental BTC Withdrawal Case in 2018
South Korean Court Orders Bithumb to Compensate Users for an Accidental BTC Withdrawal Case in 2018 A South Korean court ordered one of the biggest domestic cryp
US Senator: Signature Bank Collapsed Because It Embraced Crypto Customers Without Sufficient Safeguards
US Senator: Signature Bank Collapsed Because It Embraced Crypto Customers Without Sufficient Safeguards U.S. Senator Elizabeth Warren alleges that Signature Bank failed because it
Bitcoin Breaches 12-Year Support Line Against Gold – Is The Bull Run Over?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Crypto Payments Firm Bitpay Adds MATIC Support, Panini America to Accept Polygon Payments
Crypto Payments Firm Bitpay Adds MATIC Support, Panini America to Accept Polygon Payments Bitcoin and crypto payment services provider Bitpay has announced that the company now sup
Yashu Gola13 hours agoCan XRP price hit $1? Watch these levels nextXRP price almost doubled after Ripple’s legal win against the U.S. SEC. But can its rally continue after nearly reaching $1?28568 Total views14 Total s
EigenLayer’s EIGEN cracks top 100 market rank in trading debut
Alex O’Donnell9 hours agoEigenLayer’s EIGEN cracks top 100 market rank in trading debutEigenLayer’s native token unlocked at 5:00 am UTC on Oct. 1 and has been trading at just under $4 per token, or around a $6.5-b
Bank of America’s Crypto Research Debuts: Digital Assets Are ‘Too Large to Ignore’
Bank of America"s Crypto Research Debuts: Digital Assets Are "Too Large to Ignore" Bank of America’s Global Research has begun covering crypto, debuting with a report statin
US Government Moves to Regulate Cryptocurrencies After Attorney General Publishes Enforcement Framework
US Government Moves to Regulate Cryptocurrencies After Attorney General Publishes Enforcement FrameworkUnited States Attorney General (AG) William Barr says the recent publishing of