Bitcoin
Bitcoin$34 357.54

5.37%

Ethereum
Ethereum$2 037.86

5.10%

Tether
Tether$1.00

0.08%

Binance Coin
Binance Coin$292.30

4.01%

Cardano
Cardano$1.27

6.19%

XRP
XRP$0.623162

1.32%

Bitcoin dominance is about to drop below 50% for the first time in 3 years


22 Apr 2021   #Bitcoin

A weakening Bitcoin presence could give altcoins the moonshot they have waited for for three years. Bitcoin (BTC) revisited recent lows near $52,000 on April 22 as sustained weakness continued for the largest cryptocurrency.

Traders await altcoin "magic"

Cointelegraph Markets Pro and Tradingview revealed a lackluster day for BTC traders as BTC/USD briefly dipped below $53,000 before stabilizing around $1,000 higher.  The move came as Bitcoin was about to lose its market cap dominance supremacy to altcoins in what traditionally marks the "real" start of "alt season."

Charts from on-chain monitoring resource CoinMarketCap showed that as of Thursday, Bitcoin's share of the overall cryptocurrency market cap stood at just 50.1%. Having decreased sharply this year despite its own price gains, Bitcoin's market cap share versus altcoins looked set to break through support which has held for over three years.

Looking at historical behavior, each time Bitcoin loses the 50% mark, altcoins rapidly move in to pick up the slack, often led by Ether (ETH). The reshuffling thus sparks an altcoin run which truly fits the description of "alt season" — rapid gains to a peak, followed by a cooling-off period as Bitcoin regains some lost ground. This was the case in both mid 2017 and early 2018.

Should history repeat itself, it would be music to the ears of altcoin investors, many of whom have long claimed that "alt season" is already underway but has yet to show its true colors. A race to the top this time around could surprise even them, meanwhile, as many altcoins have already put in unbelievable performances in 2021. "BTC dominance 51.6%. The magic starts when 50% breaks," popular Twitter account CryptoBull summarized last week.

Market breaks Dogecoin's spell

At the time of writing, Ether in particular was showing no signs of weakness in the face of fresh wobbles for BTC/USD, gaining 6% in 24 hours to approach $2,500 once again. Others were less optimistic, with the top 50 cryptocurrencies mostly down on the day. Dogecoin (DOGE), previously the star of the show, continued its slip after hitting all-time highs of $0.44 on some exchanges. DOGE/USD was already down 40% versus the high on Thursday.

#source

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2021 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.