Alternative coins are set to take centre stage in the significant shift occurring in the cryptocurrency market.
The long-standing dominance of Bitcoin, which has lately dropped to 54% from its former 60% position, suggests that an altcoin season may be imminent.
This shift is further backed by the CoinMarketCap Altcoin Season Index, a widely-recognized crypto indicator that monitors how well leading altcoins do in comparison to Bitcoin. The index which has now risen to an astounding 80%, indicates the possibility of an absolute entry into the much anticipated alt-coin bull run.
As per TradingView, the dominance of Bitcoin has declined from its two-year support level, increasing the likelihood of a multi-layered approach to trading and investment within the broader cryptocurrency space.
Also, a growing institutional interest and an optimistic market shift continue to act as catalysts for traders and investors to seize opportunities.
For investors closely following the trend, a waning dominance of Bitcoin means diversification: to focus their attention and funds on high-potential cryptocurrencies with strong foundations and cutting-edge technologies.
Ethereum-based tokens like Pepe and Shiba Inu, Solana’s Brett and Bonk, and Elon Musk’s Dogecoin have gained significant price growth and appreciation. Ripples’s XRP has also seen significant traction, and it is currently trading above $2.
However, not all crypto analysts buy into this optimism. Pav Hundal of Swyftx argues that Bitcoin dominance could still take a high leap from its current 54% to 65%, 67%, or even 70% before a potential altcoin rise.
He added that the convoluted market dynamics make it difficult to forecast the exact timing of an altcoin surge or Bitcoin’s decline.
Similarly, CryptoQuant CEO, Ki Young Ju advises traders to take caution on times like this and particularly keep in mind that all investments include risk, and previous performance does not guarantee future results.
He added that he remains bullish on Bitcoin, as institutional support for Bitcoin remains steady and strong.