Bitcoin Achieves Highest Market Dominance Since 2021 as Altcoins Struggle

Bitcoin has reached its highest market share since April 2021, fueled by a significant price increase while altcoins struggled to gain traction.

On October 15, Bitcoin’s dominance peaked at 58.77%, coinciding with a ten-week high of $67,800, before retracing to trade around $67,000, maintaining a market cap of $1.32 trillion.

This uptick in Bitcoin’s market share has historically indicated challenges for altcoins, with Bitcoin rising 2.5% as most altcoins either remained flat or fell. However, some analysts speculate that Bitcoin’s dominance may soon decline, potentially opening the door for altcoin growth.

Crypto expert Benjamin Cowen recently suggested that Bitcoin might top out at 60%. He foresees a shift in Bitcoin’s dominance that could benefit other cryptocurrencies.

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Analyst Moataz Elsayed expressed a similar sentiment, predicting a sharp decline in Bitcoin’s dominance and signaling the start of altcoin season. Traditionally, Ether has been one of the first to respond to changes in Bitcoin’s market share; however, the current Ether to Bitcoin ratio has dropped to its lowest level since April 2021.

After hitting an all-time high of $73,738 in March, Bitcoin has been trading sideways but is nearing its previous peak of $69,000, which it held for about three years. Institutional interest remains strong, with U.S. spot exchange-traded funds reporting net inflows of $371 million on October 15, totaling over $1.1 billion in the past three days, according to Farside Investors.

Kosta Gushterov