Bitcoin is grinding around $81,500, briefly dipping below $80,000 for the first time in a month. But the strange part is what’s happening elsewhere: BTC dominance has fallen below 60%, yet altcoins aren’t taking the baton—RAIN is down 7.4%, TAO 5.5%, ZEC 5.2%, while ZRO and STRK are both down double digits. The total crypto market cap is $2.74 trillion, down another 1% in 24 hours.
A drop in dominance is usually read as money flowing into altcoins. This time, though, both the numerator and denominator are shrinking. I’m inclined to think this isn’t rotation, but broad deleveraging: money isn’t flowing from $BTC into altcoins; it’s flowing out of the entire market. A true rotation should see altcoin/BTC exchange rates rise. Right now, we’re seeing the opposite.
So don’t treat Bitcoin’s sideways action as a safety net for altcoins. Before $BTC gets back above $84,000, would you add to your $BTC position or bet that $SOL rebounds first?
A drop in dominance is usually read as money flowing into altcoins. This time, though, both the numerator and denominator are shrinking. I’m inclined to think this isn’t rotation, but broad deleveraging: money isn’t flowing from $BTC into altcoins; it’s flowing out of the entire market. A true rotation should see altcoin/BTC exchange rates rise. Right now, we’re seeing the opposite.
So don’t treat Bitcoin’s sideways action as a safety net for altcoins. Before $BTC gets back above $84,000, would you add to your $BTC position or bet that $SOL rebounds first?