Bitcoin market dominance has reached its highest level in three years as it faces renewed price pressure from altcoins. Data from TradingView shows that Bitcoin‘s share of the total cryptocurrency market value rose to 56.3% on April 12. Over the weekend, Bitcoin’s price disappointed investors as a liquidation process pushed the BTC/USD pair below $65,300.
What’s Happening on the Bitcoin Front?
The data also indicates that altcoins are facing much worse conditions, with most of the top twenty cryptocurrencies by market value dropping more than 15% during this period. Consequently, altcoins have lost crypto market share to Bitcoin, pointing to the most Bitcoin-centric crypto market since April 2021. Popular investor and social media commentator Bagsy shared his thoughts in an article on X:
“I usually don’t pay attention to Bitcoin dominance, but the amount of new altcoins entering the market every day makes the chart impressive.”
Another investor and analyst, Daan Crypto Trades, was among those who noted the recent disparity in the decline between Bitcoin and altcoins. Discussing Bitcoin open interest on X, the well-known figure stated:
“The drop in Bitcoin was minimal, and the total decline during this period wasn’t very relevant. The real damage occurred in the altcoin sector, which wiped out billions in liquidation and led to drops of up to 50%.”
Noteworthy Chart from a Prominent Figure
Bitcoin bull markets historically tend to see selling pressure in the initial stages, and after a prolonged consolidation period for the BTC/USD pair, altcoins join the process. To date, altcoins have performed well in 2024, but we have not witnessed such conditions for a meaningful period.
However, predicting what might happen next, popular investor and analyst Mikybull Crypto argues that change is coming soon. The well-known figure shared his thoughts in a section of an X post:
“The altcoin market value is perfectly following the previous Alts season step. This could be the final shakeout before an explosive upward tear, combined with a downtrend in Bitcoin dominance.”
The shared chart above compares Bitcoin and altcoin dominance, addressing the process since the end of 2020 when the Bitcoin price movement broke out from the previous macro trading range below $20,000.
