2024-04-14
Bitcoin experiences an unintentional surge to its highest level in years, causing altcoins to plummet in value.
In a surprising turn of events, Bitcoin's market cap dominance has reached its highest point in three years, leaving altcoins feeling the pressure.
According to data from Trading View, Bitcoin's share of the total crypto market cap skyrocketed to 56.3% on April 12.
Unfortunately, Bitcoin's price took a hit over the weekend, with BTC/USD falling below $65,300 due to a liquidation cascade.
However, altcoins faced even harsher conditions, with many of the top twenty cryptocurrencies by market cap experiencing a decline of over 15%.
As a result, Bitcoin has gained a larger share of the crypto market, making it the most dominant player since April 2021.
Popular trader and social media commentator Bagsy commented on this development, saying, "I don't usually pay attention to Bitcoin dominance, but the chart is impressive, especially considering the number of new altcoins entering the market every day."
Another trader,Daan Crypto Trades, pointed out the discrepancy in performance between Bitcoin and altcoins in recent days.
He stated, "Yes, Bitcoin didn't suffer much, and the overall downside wasn't significant," referring to Bitcoin open interest, "but the real damage was done to the altcoin sector, wiping out billions of Open Interest and causing significant price drops."
Historically, during Bitcoin bull markets, there is a breakout in dominance followed by altcoins catching up once BTC/USD enters a period of consolidation.
However, in 2024, altcoins have yet to experience this pattern for a substantial period of time, despite their overall good performance.
Nevertheless, fellow trader Miky Bull Crypto believes that change is imminent.
In a post on X, he wrote, "Altcoins market cap is following the previous pattern of altcoin season. This is the last shake-off before it explosively rises, while Bitcoin dominance declines."
A chart accompanying the post compared Bitcoin and altcoin dominance, drawing similarities to the end of 2020 when BTC price action had just surpassed its previous trading range below $20,000.
