The Altcoin season stopped forever? What the dominance of the emerging bitcoin will happen will happen
Bitcoin continued to dominate the entire market steadily over the past few weeks, so that many Bitcoin and many other encrypted currencies started the week In negative note. according to Data from CoinmarketCap, Bitcoin is now 60.4 %, the highest level since the 2021 bull market.
This is the increasing dominance of bitcoin Talks have intensified whether the Altcoin season was imminent or temporarily stopped. According to the famous cryptocurrency analyst Benjamin Quinn, Bitcoin’s dominance may continue at the present time until the current direction of launching the new Mimi currency ends.
Bitcoin dominance indicates a long -term transformation
according to Benjamin Queen encryption analyst, the truth is that Altcoins has steadily lost value against Bitcoin since 2021, despite sometimes short -term gatherings. His point of view indicates, based on the PTC scheme/BTC, that investors expect the explosive explosives to return You may need to wait longer.
Bitcoin’s increasing dominance on the broader cryptocurrency market has raised questions about when Bitcoin will eventually be launched to the Alt market as in previous bulls. COWEN highlights that the percentage of others/BTC, which measures the market value of all cryptocurrencies outside the top ten against Bitcoin, was in the direction of a continuous decline for nearly three years.
As of now, the percentage of others/BTC at the lowest new level this week since the Taurus 2021 market.
Interestingly, Quinn noticed this trend for temporary nails among a few altcoins as one of the reasons why Bitcoin dominates height. A large part of the Altcoin market is constantly pressed by noise cycles, with new Mimi currencies appearing Bitcoin is briefly outlined Before collapsing at the end. Quinn believes that many investors misuse these short -term pumps as signs of Altcoin but they ignore the broader trend of capital flow to Bitcoin.
Will Altcoins recover? The main market indicators to watch
The steady decline of others/BTC explains how capital is constantly flowing from Altcoins, which enhances Bitcoin as dominant encryption, especially among institutional investors. However, many alternative defenders Continue to expect emission.
On the other hand, Queen noted the quantitative tightening (QT) as the main historical factor that It determines when the altcoin season You will eventually roll to work. During the previous emerging market, the end of the quantitative tightening indicated a turning point for Alts, allowing them to restore momentum against bitcoin. However, since QT is still in effect, it argues that the conditions needed to return Altcoin have not yet been fulfilled. As such, the alternative season may be turned out indefinitely.
At the time of this report, Bitcoin is traded at $ 97,900.
Distinctive image from Istock, Chart from TradingView.com
