Bitcoin Reaches Cycle High of 58.9%, More Pain Before Altcoin Season?
As BTC approaches $70,000, its crypto market domination has reached 58.9%, a cycle high.
As Bitcoin dominates, are altcoins in trouble?
Bitcoin dominance (BTC.D) reached a cycle high of 58.9%. The crypto market last saw this BTC.D level in April 2021.
Bitcoin has gained about 10% in the previous week, trading at $67,769 after a modest reversal after Iran's assault on Israel earlier this month.
According to CoinGecko, the crypto market cap rose from $2.26 trillion on October 8 to $2.41 trillion on October 16. However, BTC price growth drives the crypto market cap increase.
BTC.D started October at 57.1%. Bitcoin has climbed 1.8% since then, outperforming altcoins like Ethereum (ETH), Solana (SOL), Binance Coin (BNB), and others.
The present position of BTC.D casts doubt on the much-anticipated "altseason," which generally sees altcoins rise rapidly and BTC.D fall. BTC.D peaked at 70% in 2020-21's post-COVID bull market before falling to 40% by mid-2021.
BTC.D bottomed out at 39% in late 2022 when FTX suspended operations owing to leadership fraud accusations. BTC.D has gradually risen since then, as indicated in the chart below.
The ETH/BTC trading pair is essential as BTC.D rises. The ETH/BTC trading pair, often known as the ratio, compares Ethereum (ETH) to BTC.
The ETH/BTC trading pair is at 0.0385, last seen in April 2021. Ethereum has failed to make a higher high versus Bitcoin since November 2022, indicating lackluster price activity over the previous two years.
