- Bitcoin dominance grows, delaying altseason, as historical trends show that altcoins tend to spike when Bitcoin dominance starts declining.
- The ETH/BTC must first level out and move upwards, so it acts as a crucial indicator of the upcoming change.
- If Bitcoin dominance drops down to 50%, there could emerge an ephemeral but lively altcoin season before the next meaningful correction.
Bitcoin dominance is one factor that decides if an impending altseason has finally occurred. If altcoins are going to enjoy any form of meaningful surge, the ETH/BTC first has to level out and head north, say analysts. An across-the-board altcoin surge does not appear possible while Ethereum does not fare well against Bitcoin.
Bitcoin Dominance and Market Trends
Benjamin Cowen, well-known crypto analyst, emphasized the importance of dominance by Bitcoin when it comes to cycles. Dominance by Bitcoin, he continued, does not always indicate bearish trends across crypto markets. In previous halving cycles, dominance by Bitcoin drops, giving opportunities to altcoins. In 2024, so far, dominance by Bitcoin has risen, delaying the anticipated altseason.
Cowen has also commented over the last three years on devaluation across the ALT/BTC markets. Many investors have looked forward to an altcoin resurgence, but the markets’ composition has always leaned toward positions heavy in Bitcoin. His case has always been that cycles are driven by Bitcoin, while altcoins follow only after Bitcoin has established influential price trends. The same has reinforced fundamental teachings on timing and behavior in markets.
ETH/BTC Pair and Their Place Within Altcoin Season
The ETH/BTC exchange rate serves as an indicator of momentum for altcoins. ETH/BTC has actually fallen below what he initially had expected, Cowen added. While he does not anticipate further declines, he does not wish to anticipate an altseason too early. Traders time and time again have predicted breakouts in altcoins over the past couple of years, only to discover the market shifting toward dominance by Bitcoin.
Post-halving years provide a gentler climate for altcoins, but there must be the perfect environment for an authentic altseason. If ETH/BTC does reverse, it could signal shifting sentiment, allowing altcoins to ride greater price fluctuations.
Potential for Altseason in 2025
According to XForceGlobal, the supremacy of Bitcoin could dip below 50%, creating a perfect context for altcoins. If this takes place, it could provide an explosive, if fleeting, opportunity for altcoins to outshine Bitcoin only before the next bearish decline.
As the crypto markets progress throughout the course of the year, BTC dominance trends and ETH/BTC price fluctuations will play an essential role. Investors are counting on an impending altseason, but timing and magnitude depend on general trends.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
