Bitcoin Dominance Soars to Three-year High
16 Oct, 2024 ● Crypto News
The market dominance of Bitcoin surged to its highest point since April 2021 as its price continued to rise, while the altcoin market remained relatively stagnant.
On Oct. 15, Bitcoin's dominance reached a three-and-a-half-year high of 58.77%, coinciding with the cryptocurrency hitting a 10-week peak of $67,800, according to TradingView.
Following this, Bitcoin briefly dropped to $64,880 before recovering to trade just above $67,000, with a market capitalization of $1.32 trillion.
Historically, increases in Bitcoin's dominance have signaled trouble for altcoins. On this day, Bitcoin gained 2.5%, while most altcoins either remained flat or declined.
However, some traders believe Bitcoin's dominance may be short-lived, paving the way for a rise in altcoins.
In an Oct. 16 post on X, ICT Crypto founder Benjamin Cowen predicted that Bitcoin's dominance would peak at 60%.
Crypto investor Coach K Crypto also suggested that Bitcoin's dominance had already peaked for this cycle, telling his 129,000 X followers that Bitcoin "needs to rip" before any significant altcoin movement can occur.
He added, "Soon enough, there’s going to be a breakdown in [Bitcoin dominance], which will lead to memecoins and other major altcoins getting a taste."
Analyst Moataz Elsayed echoed this sentiment on Oct. 14, predicting that Bitcoin's dominance "is about to crash hard" and signaling the start of an altcoin season.
Ethereum, which historically moves when Bitcoin's dominance declines, has been under pressure.
The Ether to Bitcoin ratio, a measure of BTC to ETH conversion, is near its lowest point since April 2021, dipping below 0.039 this week, according to TradingView.
Since reaching a record high of $73,738 in March, Bitcoin has mostly traded sideways.
However, it's now approaching a significant psychological level—its 2021 high of $69,000, which it has maintained for about three years.
Institutional interest in Bitcoin remains strong, with the 11 U.S. spot exchange-traded funds (ETFs) seeing net inflows of $371 million on Oct. 15 alone.
Over the past three trading days, these products have accumulated more than $1.1 billion in inflows, according to Farside Investors.
Sources:
https://cointelegraph.com/news/bitcoin-dominance-over-three-year-high-altcoins-see-little-gains
https://www.tradingview.com/symbols/BTC.D/
https://x.com/intocryptoverse/status/1846250939965231387
https://x.com/Coachkcrypto/status/1846335308327272633
https://x.com/Eljaboom/status/1845832713774772484
