Bitcoin Dominance Surges to 30-Month High, Altcoins Await Potential Boom

Once again the Crypto Currency market is evolving and charging right out of a Crypto Winter as Bitcoin (BTC) continues to grow its dominance. Bitcoin’s market share is now reaching a fresh 30 month high at 54.4% .

This surge in Bitcoin’s dominance comes as it outperforms most Altcoins on the market. While Bitcoin's recent rally is impressive, historical trends suggest that an altcoin boom might not be far off.

We look at Bitcoin dominance as a metric that assess Bitcoin's market capitalisation compared to the total digital asset market consisting of Ethereum, Solana etc which now exceeds 1.8 Million different Crypto currencies.

Bitcoin has just reached levels not seen since the height of the bullish market in April 2021, as reported by TradingView data. With a dominance rate over 50% shows that Bitcoin's market value exceeds the combined value of all other cryptocurrencies.

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Bitcoin Surge

The upward trajectory of Bitcoin dominance started not too long ago when Bitcoin broke free from a prolonged period of oscillation stuck between 39% and 49% for nearly two years. The breakout coincided with Bitcoin's rally above $30,000, fuelled by news of BlackRock filing for a spot BTC ETF in the United States.

The hype and hope in the digital asset market still revolves around the expectation that the U.S. Securities and Exchange Commission (SEC) will eventually approve this ETF which if it does may drastically increase demand for Bitcoin and excel the token to levels that outperform the 2021 boom.

The rise in Bitcoin’s dominance can be attributed to Bitcoin's role in the crypto market cycle and its status as a less risky asset compared to many altcoins like Ethereum (ETH) which is the second largest cryptocurrency.

If we look at previous market cycles they often kick off very similar to what we are seeing right here, right now where Bitcoin surges as many people invest in the token. Bitcoin’s growth and investment is often preferred in comparison to other digital assets as it is seen as a less risky investment opportunity.

This is also backed up by Macro Now newsletter author, Noelle Acheson who stated that "Bitcoin tends to lead crypto markets in the early part of a cycle, only losing dominance when investors become more comfortable with higher-risk assets and smaller tokens start outperforming." Acheson further noted, "BTC benefits from the ETF and safe haven narratives, while ETH faces regulatory challenges and upgrade uncertainties."

So that means…. We can be prepared for an alt season starting soon.

Hive and Leo Boom

In the midst of all this our very own preferred Alt Coin’s Leo and Hive Token have shown signs of strong growth. Hive the native token of Hive Blockchain, and Leo, the finance token of Leo Finance have demonstrated resilience and a strong potential amid the Bitcoin dominance surge. Their performance is closely aligned by the growth in Bitcoin price and are early indicators of an impending altcoin resurgence.

While Bitcoin's reign in the crypto currency world remains unchallenged the cyclical nature of the seasonal market suggests that altcoins may soon have their moment in the sun as the latest crypto winter comes to an end and investors shift towards an increased risk appetite to make larger gains.

With the regulatory and economic landscape evolving due to the current court cases the SEC has brought before the courts. the crypto currency market while sluggish due to the fear of these cases is starting to go through a transformational process. Both Bitcoin and altcoins are likely to see some growth in this final quarter.

Why Alt Coin's boom

People often ask what brings on an alt coin rally and it is quite simple, once the market recovers and Bitcoin dominance greatly surpasses all other tokens. Opportunity emerges for high risk assets. Alt coins are often trending far lower than usual so they are often ripe for the taking. Although this doesn’t come without risk and it is also when many scams emerge and investors need to take additional precautions in order not to lose their new found wealth.

John Glover, Chief Investment Officer at crypto lender Ledn also pointed this out as the historical trend of capital flowing from Bitcoin to altcoins during Bitcoin's price surges. "Historically, when bitcoin's price rises, that money begins filtering out into altcoins," This trend is fuelled by investors seeking opportunities in altcoins as they gain confidence in taking on more risk.

Image sources provided supplemented by canva pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.

Posted Using InLeo Alpha