Ciaran Lyons3 hours agoBitcoin’s dominance ‘likely peaked’ as altcoins ’start to wake up’ — AnalystBitcoin’s dominance in the crypto market is “now losing major support” and has potentially even “peaked,” according to crypto analysts.2056 Total views5 Total sharesListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin’s market share has dipped slightly, leading crypto analysts to speculate that it may have reached its peak as traders shift their focus to altcoins.
“Bitcoin dominance has likely peaked,” founder of trading firm MNTrading Michaël van de Poppe claimed in a May 1 X post while explaining that “the bottom for altcoins is likely in.”
“Altcoins start to wake up in their Bitcoin pairs, which means that the rotation is started,” he added.
A drop in Bitcoin (BTC) dominance can signal to market participants that a potential altcoin market upswing is on the horizon as investors shift their capital from Bitcoin — considered a more stable store of value in the crypto market — to altcoins, which tend to experience more volatility.
“Bitcoin dominance is now losing major support,” added crypto trader Matthew Hyland, indicating that he will wait for the weekly close before confirming or denying “the breakdown.”
Bitcoin’s dominance — measuring 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’s dominance hit its year-to-date peak on April 14 at 56.42. Source: TradingView
“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 (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.Bitcoin’s price is down 4.89% over the past 24 hours. Source: CoinMarketCap
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.
Related:Bitcoin price loses $60K support to hit 2-month lows
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 emotional sentiment of the market — fell to a “fear” level of 43, down from the previous day"s “neutral” score of 54.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Cryptocurrencies# Bitcoin Price# Adoption# TradingAdd reaction