Bitcoin’s share of crypto market falls in sign ‘altcoin season’ is back
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- Bitcoin’s total share of the crypto market has fallen from its post-FTX high of 55%.
- The total market value of altcoins has risen at the same time.
- Traders may now be looking to altcoins for gains, Decentral Park’s head of research said.
Traders are looking to less well-known cryptocurrencies in search of gains as Bitcoin’s dominance begins to fall, according to investment firm Decentral Park.
Altcoin season
Bitcoin’s total share of the crypto market relative to the total value of all cryptocurrencies has been declining since March, Kelly Ye, head of research at Decentral Park, said in a weekly newsletter on Monday.
Bitcoin’s dominance has dropped to 47% over the weekend, down from highs of up to 55% in 2022.
“We may have entered the early stage of an altcoin season,” Ye said.
Altcoins have seen renewed interest in the past few weeks. The lower market capitalisation cryptocurrencies aren’t traded as widely, making them more susceptible to rocky price swings.
In bull markets, sky-high returns lure more risk takers who aren’t deterred by such volatility.
Bitcoin dominance was around 70% during the last halving in May 2020. This time around, Bitcoin’s hold on the market will remain below 60%, but above 50%, Ye said.
Crypto market movers
- Bitcoin slipped 1.1% to trade around $69,800.
- Ethereum fell 2% to below $3,600.