Why Are Altcoins Not Pumping? Here’s the Explanation
As Bitcoin continues to surge, trading at $98,000, many traders are wondering why altcoins are lagging behind. The answer lies in one key factor: Bitcoin Dominance.
Current Bitcoin Dominance: 61.44%
Bitcoin currently holds 61% of the market's total liquidity, meaning the vast majority of investment capital is tied up in BTC. This dominance is a major factor in why altcoins aren’t experiencing the same price movements. As the "Crypto King," Bitcoin is the preferred choice for investors, especially when major institutional players (like Michael Saylor) continue to increase their holdings.
When Will Altcoins Take the Stage?
Altcoins typically perform best when Bitcoin Dominance starts to peak and then reverse. Historically, after Bitcoin hits a new all-time high and enters a consolidation phase, investors begin to diversify into altcoins. This shift in liquidity is what triggers the much-awaited Alt Season.
In previous bull runs, Bitcoin Dominance peaked around 60-65%—and we're already approaching that threshold.
Strategy for Alt Season:
Timing Is Key: Crypto markets require patience and strategic positioning. While Bitcoin is the focus, use this time to build a portfolio of strong altcoins in anticipation of a future liquidity shift.
Monitor BTC Dominance: Keep an eye on BTC dominance charts and look for signs of consolidation around key levels.
Position Yourself Early: The altcoin market will gain momentum once Bitcoin begins consolidating. Positioning yourself early will allow you to capitalize on the upcoming surge in altcoin prices.
Pro Tip for Binance Users:
Track Bitcoin Dominance Charts.
Watch for Consolidation.
Diversify into Strong Altcoins Now.
The key to success in crypto is patience and strategy timing the shift in liquidity from Bitcoin to altcoins will be essential. Keep calm, stay focused, and prepare for the next phase of the market. Remember: Things don’t happen to you, they happen for you. 🚀