Bitcoin (BTC), the largest cryptocurrency by market capitalization, has been one of the top-performing digital assets in 2024. Despite facing challenges in the last two quarters, the premier cryptocurrency has seen a remarkable increase of over 137% in the past year.
Bitcoin’s Dominance Vs. Ethereum Up 6% In 2024
A recent report by IntoTheBlock highlighted the widening gap between Bitcoin and other digital assets in the market. The analytics platform reported a 6% increase in Bitcoin’s dominance over Ethereum (ETH) and stablecoins in 2024.
Data from IntoTheBlock revealed that Ethereum, the largest altcoin by market capitalization, is currently trading at its lowest level against Bitcoin. This underperformance of ETH has been attributed to the less successful spot exchange-traded fund (ETF) launch.
While spot Bitcoin ETFs have garnered around $18 billion in capital over the past eight months, ETH ETFs have mostly experienced net outflows since their launch in late July. This trend suggests that investors prefer Bitcoin due to its relative stability, leading to Bitcoin asserting more dominance over other assets in the crypto market.
Altcoin Season Might Be Here — Here’s How
Crypto analyst Ali Martinez shared insights on how the current Bitcoin dominance could be nearing its end, signaling the potential beginning of an altcoin season. Martinez’s analysis is based on technical patterns observed on BTC dominance and total market cap charts (excluding the top 10 assets).
Martinez pointed out the formation of a rising wedge chart pattern on the weekly timeframe for Bitcoin dominance, hinting at a potential trend reversal. On the other hand, the altcoin market cap appears to be breaking out of a falling wedge pattern on the three-day chart.
A wedge is a technical analysis pattern characterized by converging trend lines on a price chart. A rising wedge typically indicates a bearish signal in an upward trend, while a falling wedge often signals a bullish reversal.
Martinez emphasized that the “altcoin season is just around the corner,” especially with the Bitcoin dominance chart suggesting a possible trend reversal and the altcoin market cap showing a bullish breakout. The total market cap outside of the top 10 assets currently stands at approximately $213.814 billion.
In conclusion, Bitcoin’s dominance in the cryptocurrency market has strengthened in 2024, with Ethereum facing challenges and Bitcoin ETFs gaining more traction than ETH ETFs. The potential shift towards an altcoin season, as indicated by technical patterns, could bring new opportunities for investors in the crypto space.
