The dominance of Bitcoin over the entire market has continued to increase in the past few weeks, even so many Bitcoin and many other cryptocurrencies have started the week negative. Accordingly Data from coinmarketcap, Bitcoin’s dominance is now 60.4%, the highest level since the Bullenmarkt 2021.
This increasing Bitcoin dominance has intensified the conversations whether an old coin season is imminent or is an indefinite period. According to Benjamin Cowen, the popular crypto analyst, Bitcoin’s dominance could continue for the time being until the current trend of the new meme coin starts comes to an end.
Bitcoin dominance signals a long-term shift
Accordingly The crypto analyst Benjamin Cowen, the reality is that old coins have lost value against Bitcoin since 2021, despite occasionally short-lived rallies. His perspective based on the other/BTC diagram may have to wait longer.
The increasing dominance of Bitcoin over the wider cryptocurrency market has raised questions about when the Bitcoin gains, as in the previous bull cycles, will finally pass to the Alt market. Cowen emphasizes that the ratio of other/BTC measures the market capitalization of all cryptocurrencies outside the top ten against Bitcoin has been in a continuous downward trend for almost three years.
From now on, the relationship between the other/BTC this week has been at a new low since the 2021 bull market. This fall increases the idea that alts have consistently lost the ground under a few old coins despite time to time.
Interestingly, Cowen noticed this trend of temporary tips among some old coins as one of the reasons why Bitcoins is dominant on the rise. A significant part of the Altcoin market is constantly being pressed by Hype cycles, with new mems appearing Bitcoin exceed briefly Before finally collapsed. Cowen believes that many investors misinterpret these short-lived pumps as signs of ancient coin resuscitation, but ignore the more comprehensive trend of capital that flows back in Bitcoin.
Will old coins recover? To observe the most important market indicators
The constant decline in other/BTC shows how the capital consistently flows away from old coins and strengthens the strength of Bitcoin as a dominant crypto, especially among institutional investors. Many old advocates continue to anticipate a revival.
On the other hand, Cowen determined quantitative tightening (QT) as the most important historical factor that determined when the Altcoin season will bring action at some point. During the previous bull market, the end of the quantitative tightening marked a turning point for Alts, so that they could return to dynamics against Bitcoin. However, since QT is still in force, he argues that the conditions necessary for an Altcoin comeback have not yet come about. As such, the old season can stop at an indefinite period.
At the time of writing, Bitcoin acts with $ 97,900.
Selected picture of iStock, diagram of tradingview.com