The cryptocurrency market saw a significant rally last week, bringing much-needed relief to short-term speculators looking to turn profits. Bitcoin led the charge, surpassing the $64,790 mark, although the momentum seemed to have slowed down by the time of writing. This surge was not limited to Bitcoin, as altcoins like TRON, Avalanche (AVAX), and Chainlink (LINK) also recorded impressive gains ranging from 20% to 30% within just seven days.
Despite the gains in various altcoins, Bitcoin continues to maintain its dominance over the entire market. The ongoing dominance of Bitcoin has implications for the performance of altcoins in the market.
The Altcoin Season Index, which measures the performance of altcoins against Bitcoin, currently shows a reading of 22, tipping the scale in favor of Bitcoin. Similarly, the Altcoin Monthly Index also registers a reading of 29, indicating the dominance of Bitcoin over altcoins. This trend has been ongoing since the beginning of the year, with Bitcoin continuing to attract the majority of investor attention.
The last official altcoin season occurred during the 2021 bull run, indicating that altcoins have struggled to gain momentum against Bitcoin in recent months. The dominance of Bitcoin is further supported by market data, with Bitcoin currently trading at $63,850 and holding a market cap of $1.26 trillion. This represents a 6.92% increase in the last seven days, with Bitcoin accounting for 56.3% of the entire crypto market value.
Despite Bitcoin’s dominance, there are exceptions where some altcoins experience notable rallies independently. Ethereum commands the largest share of the altcoin market cap, with other altcoins collectively holding a market cap of $438.48 billion. Stablecoins also play a significant role in the market, with a market cap of $161.97 billion.
Some altcoins have seen impressive gains in recent days, with Sun Token, a stablecoin swap token based on TRON, gaining 305% in seven days. Memecoins like Dogwifhat (WIF) and POPCAT have also seen significant gains in the same timeframe. The performance of altcoins will continue to vary based on their utility and market adoption.
Overall, the dominance of Bitcoin in the cryptocurrency market has implications for the performance of altcoins. While altcoins may see periods of independent rallies, Bitcoin continues to exert influence over the market as a whole. Investors and speculators will need to closely monitor market trends and developments to make informed decisions in this rapidly evolving landscape.
