Bitcoin scores an accidental multi-year high as BTC price volatility sends altcoins shooting lower.
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BTC $67,554 market cap dominance has hit its highest level in three years as altcoins feel renewed price pressure.
Altcoins see “real damage” in wake of BTC price rout
BTC price action suffered into the weekend with a liquidation cascade bringing BTC/USD below $65,300.
At the same time, however, altcoins faced much worse conditions, data shows — many of the top twenty cryptocurrencies by market cap fell more than 15%.
BTC/USD 1-hour chart. Source: TradingView
In so doing, altcoins relinquished crypto market share to Bitcoin, and the recent highs mark the most “Bitcoin-heavy” crypto market since April 2021.
“I don’t typically look at Bitcoin dominance, but the chart is impressive considering the amount of new altcoins birthed into the market every day,” popular trader and social media commentator Bagsy wrote in a response on X (formerly Twitter).
Fellow trader Daan Crypto Trades was among those noting the difference in drawdown between Bitcoin and altcoins in recent days.
“Yes, the actual hit on $BTC was very minimal and the total downside also wasn’t very relevant,” he told X followers while discussing Bitcoin open interest.
“The real damage was done in the Altcoin sector which wiped out billions of Open Interest and made for wicks up to 50%.”
Bitcoin crypto market cap dominance %. Source: TradingView
“Altseason” hopes stay in play
Bitcoin bull markets historically tend to see a dominance breakout in their early stages, with altcoins then catching up once BTC/USD sees a period of prolonged consolidation.
So far in 2024, altcoins, while performing well, have not witnessed such conditions for a meaningful length of time.
Forecasting what might come next, however, fellow trader Mikybull Crypto argued that change would soon come.
“Altcoins market cap is perfectly following the previous Alts season step,” he wrote in part of an X post.
“This is the last shake-off before it rips explosively upward coupled with Bitcoin dominance downward trend.”
Altcoin crypto market cap dominance vs. Bitcoin dominance chart. Source: Mikybull Crypto/X
An accompanying chart compared Bitcoin and altcoin dominance, drawing comparisons with the end of 2020 — the point at which BTC price action had just escaped its previous macro trading range below $20,000.
