Bitcoin Dominance Hits 20-Month High, Altcoin Season Anticipation GrowsBitcoin, BTC, altcoins, dominance, cryptocurrency market, altcoin season, market analysis
Introduction: Bitcoin (BTC) continues to dominate the cryptocurrency market, reaching its highest price in 20 months at $42,000. Despite this surge, altcoins are not responding with the expected enthusiasm.
The significant movement of the leading cryptocurrency has narrowed the gap with its historical high to 39%, the closest since April 2022.
Delayed Start for Altcoin Season: While Bitcoin dominance (BTCD) keeps growing, nearing the 54% mark, most altcoins still trade at 80-90% below their historical highs. Even the second-largest cryptocurrency, Ethereum (ETH), lags significantly behind BTC, standing 54% cheaper than its peak during the 2021 bull market.
However, history has shown that altcoins tend to lag behind Bitcoin in previous cycles, suggesting a potential repetition of this pattern. On December 4th, @IncomeSharks commented that missing a 9% rise in Bitcoin wouldn’t hurt much when some low-cap altcoins could experience a 900% price increase.
Analyst Perspectives: Analyst @Moustache shared a similar viewpoint, stating that the altcoin market’s growth is still ahead. Renowned crypto YouTuber Lark Davis conducted a poll asking whether the altseason has already begun, with only half of the respondents answering affirmatively.
Considering high-cap altcoins, BNB is still 66% below its historical high, XRP – 81%, SOL – 75%, ADA – 87%, and DOGE – 88%. DeFi-related tokens have experienced even more significant declines.
Some Altcoins Outperforming Bitcoin: Despite Bitcoin’s dominance, several altcoins today experienced more significant movements than BTC. SHIB increased by just over 8% for the day, BCH grew by 9%, and ICP increased by 7%. However, all of them remain significantly below their all-time highs.
Cryptocurrency analysts remain confident that the situation can be turned to one’s advantage by strategically purchasing coins before the beginning of a long-term rally. Earlier this month, BeInCrypto reported that the altcoin market was on the verge of exiting the accumulation zone, supported by an extremely rare signal on the charts.
