- Bitcoin dominance reached 62.18% from 53% in December.
- The increasing number of new coins weakens the capital flow to subcoins.
Bitcoin’s dominance in the crypto market rose from 53% to 62.18% in December. Despite expectations for the Altcoin season, BTC Continues To gain market share. Traders usually expect capital to turn into subcoins after Bitcoin rallies. However, this change did not happen as expected.
Why is Bitcoin’s domination increasing?
Various factors contributed to the increasing domination of Bitcoin. Corporate investors continue to accumulate Bitcoin and increase the demand. Companies such as strategy constantly collect funds to buy more BTC. This creates continuous print pressure by keeping Bitcoin’s market share high.
Spot’s launch Bitcoin Etfs It also strengthened Bitcoin’s position. These ETFs provide easier access to Bitcoin to corporate investors. Meanwhile, most subcoin lacks similar financial tools. This made BTC a preferred choice for traditional investors.
Another key factor is an increasing number of new markers. With many options, capital spreads to different beings rather than focusing on established subcoins. This disintegration limited a subcoin rally potential.
Many of them approved Ethereum ETF to reduce Etcoin’s dominance. However, the effects are smaller than expected. While ETH ETFs saw strong start entries, they could not increase the wider Altcoin market. As a result, BTC continues to be dominant.
Is the Altcoin season still possible?
Some analysts believe that a subcoin season is only delayed and not canceled. Crypto analyst Rek Capital emphasized an important technical indicator. According to him, if the Altcoin market value closes over $ 250 billion, it can trigger a rally.
Altcoins recently survived a sharp decline in early March. The total Altcoin market value fell briefly below $ 200 billion before returning. Now about 249 billion dollars. A approved break over $ 250 billion can push the market towards 315 billion dollars. However, reaching the highest of December 2024 to 451 billion dollars will require more acceleration.
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