Bitcoin Dominance At 4-Year Low, Is An Altseason Coming?

The price of bitcoin (BTC) showed some signs of life over the past week. Still, bitcoin dominance, i.e. bitcoin’s market share relative to all other cryptocurrencies, only seems to be declining further. So Bitcoin is doing well, but the altcoin market is doing even better! Does this mean there is another alt season coming up?

Bitcoin dominance continues to sink

Yesterday, bitcoin dominance hit a low of 38.67%. Such a low percentage has not been seen for at least four years! The last time the dominance was this low was on June 10 in 2018. Back then, bitcoin’s dominance was a comparable 38.19%, according to dates from CoinMarketCap.

The low dominance of the largest cryptocurrency shows that altcoins catching up against BTC. Of course, we also saw this reflected in the prices of a number of large altcoins of late. So rose dogecoin (DOGE) following the news that Elon Musk had taken over Twitter was huge and Polygon (MATIC) also experienced a significant increase after it was announced that the started working with Meta.

Possible signal for altseason

In the past, low bitcoin dominance was often seen as a possible signal that an altseason is coming. Using this theory, one could of course say that the door is open for a new altseason. However, it is of course not that simple. The past is no guarantee for the future.

Much depends on the current macro-economic situation that still hangs like a dark cloud over the crypto market. Although things are finally looking a bit better now, even compared to a few weeks ago, all this could turn around again if, for example, the US central bank comes with unexpected measures.

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Nevertheless, low bitcoin dominance is a positive signal for the altcoin market. Does that automatically mean that an altseason is guaranteed to start? No, we depend on too many external factors for that. After all, we are still in the middle of a persistent bear market.

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