Following the explosive rally in November, the price of BTC in December is beginning to lose pace against the push from alternative currencies. As a result, Bitcoin's dominance has experienced a marked decline in recent days and is down 56.13% at the time of writing this note.
It is worth remembering that the dominance reached 61.75% on November 21. Meanwhile, the rest of the market followed at a slower pace, including the explosive memecoins. Now, BTC's fuel at this stage seems to be running out and it is the turn of the alternative coins.
Now, the average performance of these tokens over a 90-day period comfortably exceeds that of the queen cryptocurrency. According to data from the Blockchain Center portal , 38 of the top 50 altcoins outperform BTC in these three months ending this Tuesday. This means that we are officially in an altcoin season, according to that portal.
According to the parameters of this index, at least 75% of coins must outperform BTC to enter an altcoin season . Now, the indicator reads 80%, which confirms the timid entry of the market into this new stage of low Bitcoin dominance.
What does Bitcoin's low dominance reflect?
Optimistic Bitcoin investors bet heavily on the currency after Donald Trump's victory in early November. However, few imagined that the price would face strong resistance at the psychological barrier of $100,000. In fact, $100K became a Chinese wall that leaves no room for capital to maneuver.
Thus, after several attempts to break out, investors are at a point of relative disinterest. Thus, they prefer to explore other tokens that show better performance. This herd movement causes that this time it is the price of Bitcoin that lags behind the push of other currencies.
On a constant downward trend, Bitcoin's market share is becoming less and less. The rise of other coins and projects, as well as the desire of investors to create more diversified portfolios, are causing BTC's market dominance to plummet.
In general terms, alternative tokens, or altcoins, continue to gain the attention of investors. In simple terms, particular cases such as Stellar's XLM, Ripple's XRP and even Cardano's ADA are presented as irresistible options.
Many investors choose to abandon part of their BTC holdings to open operations with other tokens. When this trend becomes persistent, that is when the altcoin season occurs, as is the case now.
