Bitcoin Loses Dominance as Altcoins Lead the Market Surge
The impact of altcoins taking the lead over Bitcoin is not particularly positive. Bitcoin dominance represents the percentage of the total cryptocurrency market held by the world's largest digital asset. Whenever this dominance increases, altcoins tend to lose influence in the market, but the rising value of altcoins is causing Bitcoin to lose its dominance.
This is later considered a signal of the altcoin season, which at this point is still a long way from happening soon. This indicates that Bitcoin's dominance was affected on Thursday as it dropped to 53% after failing to breach 54%. The total market capitalization of cryptocurrencies, excluding Bitcoin, has increased by 6.83% in the past 48 hours, reaching $48.66 billion. Digital assets, including Solana, Optimism, etc., recorded increases ranging from 14% to 31% in just one day.
This is largely due to the observed accumulation over the past few weeks, leading to assets worth tens of millions of dollars moving out of exchanges. Ethereum, Shiba Inu, Fetch, and Dent emerged as the largest coin-exchange reducing wallets. In the last three months, ETH worth $778 million, SHIB worth $54.6 million, and FET worth about $48 million have exited the exchange wallets.
This hints at a long-term bullish trend, which is significant given the current optimism in the market. The Fear and Greed Index for cryptocurrencies is showing greed prevailing in the market. In general, prolonged periods of greed tend to lead to corrections caused by profit-taking from investors.
However, a closer look at the cryptocurrency market reveals that it is eagerly awaiting stronger bullish signals, and altcoins are not likely to experience any significant downturn soon.
This is later considered a signal of the altcoin season, which at this point is still a long way from happening soon. This indicates that Bitcoin's dominance was affected on Thursday as it dropped to 53% after failing to breach 54%. The total market capitalization of cryptocurrencies, excluding Bitcoin, has increased by 6.83% in the past 48 hours, reaching $48.66 billion. Digital assets, including Solana, Optimism, etc., recorded increases ranging from 14% to 31% in just one day.
This is largely due to the observed accumulation over the past few weeks, leading to assets worth tens of millions of dollars moving out of exchanges. Ethereum, Shiba Inu, Fetch, and Dent emerged as the largest coin-exchange reducing wallets. In the last three months, ETH worth $778 million, SHIB worth $54.6 million, and FET worth about $48 million have exited the exchange wallets.
This hints at a long-term bullish trend, which is significant given the current optimism in the market. The Fear and Greed Index for cryptocurrencies is showing greed prevailing in the market. In general, prolonged periods of greed tend to lead to corrections caused by profit-taking from investors.
However, a closer look at the cryptocurrency market reveals that it is eagerly awaiting stronger bullish signals, and altcoins are not likely to experience any significant downturn soon.
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