Bitcoin dominance (BTC.D) continues its upward trajectory, hitting 61% as Bitcoin edges closer to the $100,000 mark. This rising dominance reflects growing investor preference for Bitcoin, leaving altcoins under pressure. As the market anticipates altseason, analysts explore current trends and their potential impact on altcoins.
Bitcoin’s Dominance and Its Market Implications
Bitcoin dominance represents the share of Bitcoin’s market cap in the overall cryptocurrency market. It plays the role of market sentiment indicator. An increasing dominance normally means that Bitcoin is leading the charge, and other coins can barely follow. The weekly BTC.D chart shows a bullish trend inside an ascending wedge that indicates further Bitcoin outperformance in the short term.
This rally aligns with Bitcoin’s bullish momentum, driven by technical patterns and investor optimism. As Bitcoin targets the $100,000 milestone, its dominance continues to suppress altcoin price actions. Historically, altcoins have gained momentum after Bitcoin’s rallies, prompting speculation about the timing of the next altseason.
Benjamin Cowen’s Prediction for Bitcoin Dominance
According to Benjamin Cowen, the founder of the Into The Cryptoverse, Bitcoin dominance will fall in 2025. Cowen has also pointed to the notion that Bitcoin Dominance normally rises after halving years but declines as altcoins gain traction. He expects the US Federal Reserve to transition from QT to QE in 2025, which has in the past contributed to provoking higher altcoins performance.
Cowen acknowledges that predictions can be uncertain, stating, “Sometimes I am wrong, sometimes I am right.” However, he remains confident that the post-halving cycle and changes in monetary policy will favor altcoins in 2025.
Can Bitcoin Dominance Decline Trigger a New Altseason? Analyst Weigh In
Is This the Right Time to Invest in Altcoins?
The current market presents a challenging scenario for altcoins. With Bitcoin dominance rising, most altcoins are experiencing downward pressure. However, analysts suggest that this period could be an opportunity for long-term investors to accumulate altcoins before the anticipated 2025 altseason.
As Bitcoin approaches $100,000, its growing dominance leaves altcoins in a state of stagnation. Market participants eagerly await the tipping point when the altcoin rally will commence, potentially offering substantial returns for patient investors.
