Altcoins
Bitcoin’s share of the crypto market falls, a sign that “altcoin season” is back – DL News
- Bitcoin’s total share of the crypto market has fallen from its post-FTX peak of 55%.
- The total market value of altcoins increased at the same time.
- Traders could now turn to altcoins for gains, the head of Decentral Park research said.
Traders are turning to lesser-known cryptocurrencies in search of gains as Bitcoin’s dominance begins to fall, according to investment firm Decentral Park.
Altcoin Season
Bitcoin’s total share of the crypto market relative to the total value of all cryptocurrencies has been declining since March, said Kelly Ye, head of research at Decentral Park, said in a weekly bulletin on Monday.
Bitcoin dominance fell to 47% over the weekend, down from 2022 highs of up to 55%.
“We may have entered the start of an altcoin season,” Ye said.
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Altcoins have seen renewed interest in recent weeks. Cryptocurrencies with lower market caps are not traded as widely, making them more susceptible to harsh price swings.
In bull markets, sky-high returns attract more risk-takers who are not deterred by such volatility.
Bitcoin’s dominance was around 70% during the last halving in May 2020. This time around, Bitcoin’s market hold will remain below 60% but above 50%, Ye said.
Crypto market players
- Bitcoin slipped 1.1% to trade around $69,800.
- Ethereum fell 2% to below $3,600.