$BTC

If Bitcoin dominance continues to rise, reaching or surpassing the current 61% mark, altcoins could see further declines in both value and market share. Here's what could happen:

1. Price Decline for Altcoins: As Bitcoin dominance increases, investors typically shift funds from altcoins to Bitcoin. This can create selling pressure on altcoins, causing their prices to fall against both USD and BTC.

2. Liquidity Shift: Bitcoin often becomes the main focus during periods of high dominance. Traders and institutional investors prioritize Bitcoin for its liquidity and relative stability, which can result in lower liquidity for altcoins, making them more volatile and riskier.

3. Altcoin Innovation Slowdown: When Bitcoin dominance rises, there's often a lull in altcoin investments and development. This can hinder the progress of projects that rely on ongoing funding, potentially stalling innovation in the altcoin space.

4. Market Sentiment Impact: A rising Bitcoin dominance can reflect a market preference for "safer" assets in times of uncertainty. If this trend continues, sentiment may favor Bitcoin over speculative altcoins, reinforcing the cycle and making it challenging for newer or smaller projects to gain traction.

However, this trend doesn't necessarily mean that altcoins are "finished." Historically, when Bitcoin consolidates after a dominance surge, altcoins can recover or rally, especially those with strong fundamentals and active communities. If you're actively trading or investing in altcoins, watching BTC dominance can be a helpful indicator of potential shifts in the crypto market cycle.

not financial advice 🔥🤏