- April 23, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
A crypto analyst has shed light on the latest trends regarding the Bitcoin (BTC) dominance within the crypto market, suggesting a potential shift in investor sentiment as they diversify their portfolios beyond the pioneer cryptocurrency.
Bitcoin Dominance Is Waning
Popular crypto analyst and trader, Michael van de Poppe took to X (formerly Twitter), on Monday, April 22, to share valuable insights on Bitcoin’s dominance and investors’ sentiment on the cryptocurrency following the halving event.
The halving event occurred in the early hours of April 20, cutting the block rewards of miners by 50% and reducing the cryptocurrency’s supply. This previously anticipated event had triggered excitement amongst crypto enthusiasts and investors, as market analysts predicted a bull run following the event.
However, the conclusion of the fourth Bitcoin halving cycle failed to produce any profound effect on BTC’s price, particularly when compared to its massive rise to new all-time highs before the halving. During the pre-halving period, Bitcoin skyrocketed above $75,000 in March, fueled by the surging demand for Spot Bitcoin Exchange Traded Funds (ETFs).
As of writing, the cryptocurrency is trading at a price of $66,205, down by more than $8,000 from its previous all-time high, according to CoinMarketCap.
Poppe has explained that following the completion of the Bitcoin halving event, the general cryptocurrency market has been experiencing an upward trend. The analyst affirmed that BTC’s dominance within the crypto market was waning significantly. Additionally, data from TradingView has shown that Bitcoin’s dominance over the market capitalization is presently 55.29%, reflecting a decrease of 0.26% over the past week.
This decline in dominance suggests that investors are beginning to potentially move away from the popular cryptocurrency to diversify their holdings into other digital assets. Poppe referred to this shift as a “rotation,” highlighting that the movement has started slowly but steadily.
He shared a price chart of Bitcoin against Tether (USDT) displaying the BTC’s price movements from February through April. The crypto analyst predicted a support level, pinpointing $57,000 as the potential bottom if BTC fails to break above $70,300.
Altcoin Season On The Horizon?
The altcoin season typically occurs when the prices of lesser cryptocurrencies soar significantly higher and outperform Bitcoin. This period usually follows a major decrease in Bitcoin’s dominance in the crypto space.
“It’s possible we’ll see another altcoin season if Bitcoin’s dominance index continues to wane, shifting investor focus towards altcoins,” a crypto community member stated.
Moreover, Poppe has declared that “the time for altcoins is on the horizon.” He revealed his strategy of taking a long position in anticipation of this potential rally, emphasizing that an altcoin bull run would depend on Ethereum’s performance in the market and the possibility of an Ethereum Spot ETF.
