Bitcoin and numerous other cryptocurrencies have experienced notable price surges in recent weeks. Bitcoin, specifically, is approaching its all-time high, with the recent surge past $68,000 placing it merely 8% from achieving a new price milestone.
Interestingly, the influx of investments into Bitcoin has resulted in an increase in its dominance relative to altcoins. Recent data shows Bitcoin’s market dominance now stands at 65% of the entire market cap, marking the highest level in three years. This raises the question of whether an altcoin season will emerge during the current market cycle.
Bitcoin Outpaces Ethereum and Other Altcoins
As per data from IntoTheBlock, Bitcoin recently achieved a market dominance of 65%, the highest recorded for this metric during the 2021 bull run. At that time, Bitcoin captured the majority of investments before eventually giving up some of its dominance to Ethereum and various altcoins in mid-2021.
The cryptocurrency landscape, however, has evolved significantly since then, and Bitcoin has now established a strong position among institutional investors. Consequently, the recent inflows into Bitcoin and its heightened dominance can be attributed to investments from Spot Bitcoin ETFs.
Data from SoSoValue indicates that Bitcoin-based spot ETFs in the United States posted impressive performance last week. These ETFs registered consistent daily inflows, leading to a net inflow of $2.13 billion, the highest since the third week of March.
This news is promising for enthusiastic Bitcoin investors and supporters, but not so favorable for those betting on Ethereum’s higher performance. One such investor, crypto millionaire James Fickel, has reportedly lost considerable amounts exceeding $43 million due to his risky wager that Ethereum would outperform Bitcoin in 2024.
Potential Altcoin Season in Six Months
As Bitcoin consolidates its dominance, the likelihood of a new altcoin season is increasingly questionable. Data from the Altcoin Season Index indicates a reading of 31, significantly below the 75 threshold that typically signals the start of an altcoin season.
Despite this cautious outlook, crypto analyst Ash Crypto presents a more upbeat view regarding an impending altcoin season. He predicts that the altcoin season will commence within the next six months. In a recent social media post shared with his 1.2 million followers on X, Ash Crypto forecasted that Bitcoin will maintain its dominance in the short term, with potential price levels reaching between $80,000 and $90,000 within the next 30 days.
Reflecting on insights from the previous market cycle, Ash Crypto pointed out that altcoins outperformed Bitcoin for approximately five months in 2021, shortly after Bitcoin dominance peaked.
At the time of writing, Bitcoin is valued at $68,400.
Featured image from Experian, chart from TradingView
