Altcoin
Like Bitcoin [BTC] Dominance Drops Below 55%, Is Altcoin Season Here?
- The market cap of altcoins has increased as Bitcoin’s market cap has declined.
- The launch of spot Ethereum ETFs could further erode Bitcoin’s dominance.
AMBCrypto analysis revealed that Bitcoin [BTC] dominance chart is down. On July 10, dominance was 55.10%. However, at press time, it had dropped to 54.62%.
Bitcoin dominance is an important indicator of the price of BTC. This is because it shows how the coin’s market cap compares to the market cap of other cryptocurrencies.
Can BTC’s dominance continue?
If Bitcoin dominance increases, it means that the coin is outperforming the average altcoin. However, when it decreases, it indicates that BTC is losing momentum and altcoins are performing better.
On a Year-To-Date (YTD) basis, coins have been outperforming. But in the last month and recent times, the opposite has happened. If this continues, Bitcoin could fall further despite the correction it has had.
Source: TradingView
At press time, BTC was trading at $58,257. This represented a 1.37% increase over the past seven days. However, an indicator to check whether Bitcoin is starting to lose its superiority it’s the TOTAL2.
TOTAL2 is also known as the total market capitalization of the cryptocurrency market excluding BTC. If it increases, it means that altcoins are showing stronger performance than Bitcoin.
But when it drops, it means that BTC is leading the market recovery.
Between July 5th and the time of writing, TOTAL2 has increased by 8.01%, which indicates that the average prices of altcoins have been better than Bitcoin dominance.
Altcoins are ready to fight the king
The last time the indicator took such measures, the market cap jumped 66.61% between February and March, while the market cap also exceeded $1.20 trillion. At press time, the market cap was $953.68 billion.
If it continues to rise, it could reach $1 trillion, perhaps ushering in the long-awaited altcoin season. If that happens, the BTC Correction would continue.
Source: TradingView
One factor that can lead to an increase in dominance is Ethereal [ETH]Historically, when ETH’s price performance is better than BTC’s, it gives strength to other altcoins.
In turn, it reduces Bitcoin’s dominance. One catalyst that market participants are waiting for is the launch of Ethereum spot ETFs.
However, it is also important to watch the ETH/BTC chart to see if the altcoin will be able to prevail over Bitcoin in the coming weeks.
When ETH/BTC rises, it means that Ethereum is outperforming Bitcoin. But a decline suggests otherwise. Previously, the ETH/BTC ratio was 0.051.
Source: TradingView
Realistic or not, here it is BTC Market Cap in terms of ETH
But at the time of writing, it increased to 0.053, meaning that 1 ETH was equal to 0.053 BTC. Furthermore, the Relative Strength Index (RSI) revealed that ETH was gathering a good level of momentum.
If sustained, this could push the ratio to 0.056, with the potential risk of a decline in Bitcoin dominance.