Bitcoin dominance hits 62%, defying altcoin season expectations

Bitcoin’s market dominance has surged to 62%, the highest it’s been since February 2021. This rise contradicts the wider expectations of a so-called “altcoin season” when alternative cryptos rally harder than BTC.

The Altcoin Season Index, which tracks the price performance of the top 50 altcoins against Bitcoin, is at 18. A reading below 25 indicates a “Bitcoin season,” meaning altcoins are faltering compared to Bitcoin.

Investors drive Bitcoin’s dominance over altcoins

During altcoin season, investors move their profits from BTC into smaller markets like Ethereum (ETH) and Solana (SOL) to get higher returns, but lately, the once-anticipated season has been experiencing a dry spell. 

Bitcoin has retained its dominance in the market for the longest period, forcing analysts to question whether there will be an altcoin season at all this year. 

Even after the US Securities and Exchange Commission (SEC) approved spot Ethereum exchange-traded funds (ETFs) that allowed people to buy and sell ETH through traditional brokerage accounts, we still haven’t witnessed a surge in the coin’s price. 

Likewise, Solana’s low-cost transactions and faster processing times boosted its NFT and decentralized finance (DeFi) sectors, which gave investors hope for an altcoin season. 

However, because of recent market corrections and concerns over its liquidity, this growth still wasn’t enough to raise the price of SOL.

Some crypto analysts claim that BTC will likely retain its dominance for longer if there are no changes in the regulations and challenges affecting altcoins’ liquidity. But because history repeats itself in the crypto world, we will likely receive an altcoin season once BTC stabilizes, however long it takes.

Bitcoin’s dominance strengthens as altcoins await their turn

Because of inflation, interest rate decisions, and increased Bitcoin ETF trading volumes, we can only expect BTC to stay ahead of altcoins for the foreseeable future. 

But that doesn’t mean there is no hope for altcoins with BTC around because projects like Fetch.ai (FET) and Render Network (RNDR), focusing on AI, Web3, and decentralized applications, could still benefit once BTC stabilizes. 

Ethereum’s expected upgrade could also revive stagnant interest in its ecosystem, possibly spawning a new altcoin season. For now, BTC remains in control and will likely dictate the fate of other ecosystems for a while.  

BTC’s price is currently at $83,825. Its market cap is $1.65 trillion, and its 24-hour global trade volume is $26.87 billion.

Throughout the past day, Bitcoin has traded within a range of $84,784 to $87,723, reflecting a volatile market. Technical indicators across multiple timeframes suggest a prevailing bearish sentiment.

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