Bitcoin and many other cryptocurrencies have been experiencing significant price increases over the past few weeks. Bitcoin, in particular, has been nearing its all-time high, and the recent break above $68,000 puts only 8% away from setting a new price record.
Interestingly, this foray into Bitcoin has seen the cryptocurrency increase its dominance over altcoins. According to the data, Bitcoin market dominance is now 65% of the total market value, the highest in three years. This raises the question of whether the altcoin season will still work in the current market cycle.
Bitcoin Leaves Ethereum And Other Altcoins In The Dust
According to the data from Enter TheBlockBitcoin recently reached 65% market dominance, the highest figure recorded in the metric during the 2021 bull rally. Meanwhile, Bitcoin took the lion’s share of investment before it relinquished some of its dominance to Ethereum and other altcoins in mid-2021.
Interestingly, the crypto landscape has changed a lot since then, and Bitcoin has now found a foothold among institutional investors. As such, Bitcoin’s recent inflow and dominance may be attributed to inflows from Spot Bitcoin ETFs.
In accordance with flow data from SoSoValue, the Bitcoin-based spot ETFs in the United States had an impressive performance last week. These ETFs saw consistent daily inflows, culminating in total inflows of $2.13 billion, the highest since the third week of March.
This is good news for investors and ardent supporters of Bitcoin but not for investors betting on Ethereum’s overperformance. One such investor is crypto millionaire James Fickel, who lost huge amounts more than $43 million, thanks to his very risky bet that Ethereum will surpass Bitcoin in 2024.
Altcoin Season to Make Things in Six Months
As Bitcoin continues to consolidate its dominance, the potential of the new altcoin season is increasingly uncertain. Current data from the Altcoin Season Index shows a reading of 31, significantly below the limit of 75, which usually indicates the beginning of the altcoin season.
Despite this cautious outlook, crypto analyst Ash Crypto offers an optimistic view of the altcoin season. According to him, the altcoin era will begin in the next six months. In the latest social media posted shared with his 1.2 million followers on X, Ash Crypto predicted that Bitcoin will continue its dominance in the short term, possibly rising to unprecedented price levels between $80,000 and $90,000 within the next 30 days.
Using data obtained during the previous market cycle, Ash Crypto revealed that the altcoins market outperformed Bitcoin for about five months in 2021, right after Bitcoin’s dominance reached its peak.
At the time of writing, Bitcoin is trading at $68,400.
Featured image from Experian, chart from TradingView
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