Altcoins Set to Soar as Bitcoin Dominance Peaks
03 May, 2024 ● Crypto News
Bitcoin’s market share has slightly decreased, prompting crypto analysts to speculate that it may have peaked as traders shift their attention to altcoins.
“Bitcoin dominance has likely peaked,” founder of trading firm MNTrading Michaël van de Poppe claimed in a May 1 X post, explaining that “the bottom for altcoins is likely in.”
He added, “Altcoins start to wake up in their Bitcoin pairs, which means that the rotation is started.”
A decline in Bitcoin dominance can indicate to market participants that an upswing in the altcoin market may be approaching, as investors move their capital from Bitcoin — seen as a more stable store of value in the crypto market — to altcoins, which are typically more volatile.
“Bitcoin dominance is now losing major support,” crypto trader Matthew Hyland noted, stating that he would wait for the weekly close before confirming or denying “the breakdown.”
Bitcoin’s dominance — which measures Bitcoin’s share of the total crypto market capitalization — is 53.90%, down 1.75% over the past seven days but still up 4.63% since the start of 2024, according to TradingView data.
“Bitcoin Dominance dropping. If the price continues to chop for a few months, alts could take advantage. A lot of alts holding up surprisingly well today,” trading team IncomeSharks wrote in a May 1 post on X.
Solana’s SOL, Pepe, and Dogwifhat (WIF) are slightly up over the past 24 hours at 2.76%, 3.04%, and 3.25%, respectively, according to CoinMarketCap data.
The decrease in market share comes as Bitcoin’s price fell by 10.44% over the same seven-day period.
However, the current market sentiment casts doubt on speculations that Bitcoin’s dominance has peaked.
Rising fear levels indicate market uncertainty and could drive traders to reallocate funds back into Bitcoin rather than riskier crypto assets.
According to The Crypto Fear and Greed Index, May 1 reflects the highest level of fear among crypto market investors since the beginning of the year.
On May 1, the index score — which represents the market's emotional sentiment — fell to a “fear” level of 43, down from the previous day's “neutral” score of 54.
Sources:
https://cointelegraph.com/news/bitcoin-dominance-declines-altcoins-may-start-upswing-analyst
https://twitter.com/CryptoMichNL/status/1785575057244254302
https://twitter.com/MatthewHyland_/status/1785792031849124286
https://www.tradingview.com/symbols/BTC.D/
https://twitter.com/IncomeSharks/status/1785768114220921160
