Bitcoin has reached a significant milestone, achieving its highest level of market cap dominance in three years.
This surge has occurred amidst a downturn for altcoins, which have experienced notable price declines.
According to data from Cointelegraph Markets Pro and TradingView, as of April 12, Bitcoin’s share of the total cryptocurrency market capitalization spiked to 56.3%.
This increase marks a shift in market dynamics, emphasizing Bitcoin’s growing influence compared to other cryptocurrencies.
The price of Bitcoin itself faced challenges as the weekend approached, with a drop below $65,300 due to a series of liquidations.
However, altcoins were hit harder, with many of the top twenty cryptocurrencies by market cap experiencing declines exceeding 15%.
This decline in altcoin values has resulted in a significant shift in market share towards Bitcoin.
The cryptocurrency landscape now appears more “Bitcoin-heavy” than it has been since April 2021, underscoring a reversal in the broader market’s composition.
Social media commentator and trader Bagsy noted the significance of this trend on the platform X, stating, “I don’t typically look at Bitcoin dominance, but the chart is impressive considering the amount of new altcoins birthed into the market every day.”
The sentiment was echoed by Daan Crypto Trades, another trader who pointed out the comparative resilience of Bitcoin during this period.
“Yes, the actual hit on $BTC was very minimal and the total downside also wasn’t very relevant,” he commented on X.
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He further highlighted the severe impact on altcoins, noting, “The real damage was done in the Altcoin sector which wiped out billions of Open Interest and made for wicks up to 50%.”
Historically, Bitcoin bull markets are characterized by an initial dominance breakout, followed by a catch-up phase for altcoins after a period of Bitcoin price stabilization.
This pattern has not yet been observed in 2024 for altcoins, which have performed well but haven’t sustained a rally.
Looking ahead, trader Mikybull Crypto predicts a shift in the current dynamics. In a post on X, he suggested, “Altcoins market cap is perfectly following the previous Alts season step.
This is the last shake-off before it rips explosively upward coupled with Bitcoin dominance downward trend.”
These observations are supported by a chart shared by Mikybull Crypto, which draws parallels between the current market situation and the late 2020 period when Bitcoin last broke out of its macro trading range below $20,000.
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