Bitcoin Dominates Market, Thwarts Altcoin Rise
Bitcoin's Rise Defies Market Expectations, Keeps Altcoins in the Background
The recent surge in the price of Bitcoin dashed hopes for a new altcoin season, according to CoinAnk's AltcoinSeason indicator. With an index of just 22 points, Bitcoin reaffirms its supremacy in the cryptocurrency market over altcoins.
Bitcoin continues its unstoppable rise, maintaining control of the crypto market / CoinAnk
Bitcoin Dominance in Numbers
Bitcoin has outperformed most major cryptocurrencies over the past three months. This dominance, with Bitcoin generating gains of 1.59%, is reflected in its current market share of 57.70%, a high not seen since March 2021. According to CoinAnk, Bitcoin has outperformed 75% of the top 50 altcoins by market cap, excluding stablecoins.
Factors driving Bitcoin
Several factors are contributing to the recent Bitcoin boom. Since October 2023, institutional demand has grown significantly, thanks to ETFs that have channeled a significant flow of capital in the last five weeks. Added to this is investor speculation about a possible interest rate cut cycle that could weaken the dollar and favor Bitcoin.
The fourth halving, which occurred in April 2024, cut miners' rewards in half, increasing Bitcoin's scarcity and, therefore, its price. In addition, there is an outflow of Bitcoin from centralized exchanges, with a current balance of 2.43 million BTC, compared to 2.72 million at the beginning of 2024.
The contrast with altcoins
Despite Bitcoin's dominance, some altcoins show significant gains in the same period. SUI registers a staggering 140.5% increase, followed by WBT at 74.2%, TAO at 60.8%, and AAVE at 58.9%. However, most altcoins are still suffering losses, reaffirming bitcoin's dominance in the market.
Future Outlook
The future of the crypto market remains uncertain. With bitcoin's increasing dominance and the inherent volatility of cryptocurrencies, investors should stay informed and cautious.
Disclaimer: This news does not constitute financial advice. Cryptocurrency markets are volatile and investors should conduct their own research.