Bitcoin’s dominance in the cryptocurrency market has experienced a slight decline, leading experts to speculate that it may have reached its peak. Traders are now shifting their focus to alternative coins, or altcoins, as they anticipate a potential market upswing.
Founder of trading firm MNTrading, Michaël van de Poppe, stated that “Bitcoin dominance has likely peaked,” and suggested that the bottom for altcoins has been reached. He further explained that altcoins are starting to gain momentum in relation to Bitcoin, indicating a rotation in the market.
A decrease in Bitcoin dominance often signals to investors that an altcoin market surge is on the horizon. This shift occurs as traders move their capital from Bitcoin, which is considered a more stable store of value, to altcoins, which tend to be more volatile.
Crypto trader Matthew Hyland also noted the decline in Bitcoin dominance and stated that he would wait for the weekly close to confirm or deny the breakdown. Currently, Bitcoin’s dominance stands at 53.90%, down 1.75% over the past seven days but still up 4.63% since the beginning of the year.
On April 14, Bitcoin’s dominance reached its peak for the year at 56.42%. However, the recent decrease in market share coincides with a 10.44% drop in Bitcoin’s price over the same seven-day period.
Despite this decline, there are doubts about whether Bitcoin’s dominance has truly peaked. Rising fear levels in the market indicate uncertainty among investors, which could lead to a reallocation of funds back into Bitcoin as a safer investment option compared to riskier altcoins.
It is important to note that this article does not provide investment advice or recommendations. Investors should conduct their own research and analysis before making any investment decisions.