Bitcoin (BTC) dominance in the cryptocurrency market has surged to a three-year high, exerting new pressure on altcoins. According to CoinMarketCap data, on April 12, BTC's share of the total cryptocurrency market value soared to 56.3%, reaching its highest level since April 2021. As of April 15, Bitcoin's market share was 52.0332%.
Bitcoin crash affects altcoins
While Bitcoin faced downward price pressure over the weekend, with BTC/USD falling below $65,300 due to heavy liquidations, altcoins suffered even greater losses. Many of the top 20 cryptocurrencies by market cap plunged by more than 15%.
The sharp drop in altcoin prices has led to a shift in market share, with Bitcoin becoming more dominant in the cryptocurrency market than in recent years.
Bitcoin dominance surges
Popular trader and social media influencer Bagsy commented on the impressive rise in BTC dominance, especially considering the constant influx of new altcoins into the market.
“I don’t usually follow Bitcoin dominance, but the chart is impressive considering the number of new altcoins being created on a daily basis. The divergence in the retracements between BTC and altcoins in recent days highlights the significant damage that has been inflicted on the altcoin sector.
“The real damage was done in the altcoin space, which wiped out billions in open interest and sent wicks as high as 50%.
Despite Bitcoin’s recent dominance, traders’ hopes for an “altcoin season” remain intact. Historically, Bitcoin bull runs have seen an initial surge in dominance, followed by a period of consolidation during which altcoins tend to catch up.
Is the copycat season coming?
Trader Mikybull Crypto expressed confidence in the potential of the upcoming altcoin season, suggesting that current market conditions represent the final shakeout before an explosive rise in altcoin market capitalization and a downward trend in Bitcoin dominance.
“This is the last jolt before Bitcoin’s explosive rise and the downward trend in Bitcoin dominance.”
The accompanying chart comparing BTC and altcoin dominance shows similarities to late 2020, when BTC price action had just broken out of its previous trading range below $20,000.
As the cryptocurrency market continues to evolve, traders closely monitor Bitcoin dominance and altcoin performance to predict potential market trends and profit opportunities.
The market is gradually stabilizing, and it is time to plan to buy at the bottom. Here are some of the stocks I bought at the bottom (not mentioning Bitcoin and Ethereum):
1. Solana: SOL, JUP
2. AI sector: RNDR, AKT, WLD, AGIX
3. MEME board: WIF, BOME, DOGE
4. RWA board: ONDO
5. Storage sector: AR
6. Modularity: TIA
7、GAMEFI：GALA
8. L1 sector: SUI
9. L2 section: OP
