The crypto market is undergoing notable volatility as the Altcoin Season Index rises to 59, indicating the potential shift to an altcoin dominance cycle.

Bitcoin's dominance: Holding steady amid changing sentiment

Bitcoin's dominance remains strong at 57%, but there has been a slight decline, indicating increasing interest from investors in alternative assets.

The Altcoin Season Index, which measures the performance of altcoins against Bitcoin, has recently risen to 59. Chart analysis shows that this index has surged from 33, nearing the threshold of 75, the official point signaling the start of altcoin season.

Source: blockchaincenter

This increase reflects the strong growth momentum of altcoins, supported by significant price volatility in coins like Ethereum (ETH), Solana (SOL), Avalanche (AVAX), Sui (SUI), Aptos (APT), Sei (SEI), Cardano (ADA), Near (NEAR), Uniswap (UNI), and Binance Coin (BNB).

History shows that such periods are often accompanied by a decline in Bitcoin's dominance, creating opportunities for altcoins to shine. However, it is worth noting that this index has not yet surpassed the altcoin threshold, indicating cautious optimism.

Bitcoin: Dominance amid change

At the time of writing, Bitcoin's dominance stands at 57%, down from a yearly high of 60.1% recorded just a week ago. This downward trend coincides with altcoins capturing a larger portion of the market. Ethereum's dominance has slightly increased to 13.1%, indicating renewed interest in the second-largest cryptocurrency. This does not even account for the Layer 2 tokens closely tied to the Ethereum ecosystem.

Bitcoin Dominance Index | Source: CoinMarketCap

In a declining market, Bitcoin often plays a role as a safe haven for investors. However, the recent dip in dominance may indicate that the market is preparing for broader growth in alternative assets, especially as investor confidence rises.

Market capitalization: Altcoin narrowing the gap

The total market capitalization of cryptocurrency, according to data from CoinMarketCap, has risen to $3.32 trillion. Bitcoin contributes $1.9 trillion, and altcoins, excluding stablecoins, account for $812 billion.

Notably, the market capitalization of stablecoins has also steadily increased to $181.06 billion, reflecting ongoing demand for liquidity and risk mitigation.

Source: CoinMarketCap

Over the past month, altcoins have shown strong growth, with market-leading coins like Sui and Solana recording double-digit percentage increases. The rise in altcoin market capitalization aligns with the Altcoin Season Index, reinforcing the argument for an imminent altcoin explosion.

Are we in an altcoin season?

While the Altcoin Season Index and the decline in Bitcoin's dominance suggest a shift, the market remains at a crossroads. For altcoin enthusiasts, the coming weeks will be a crucial period as the market seeks clarity on whether this is a prolonged altcoin season or just a temporary surge.

Investors should monitor key indicators such as the Altcoin Season Index and Bitcoin's dominance, as current market movements mark an exciting period. However, until altcoins surpass the 70 threshold on the index, we have not truly entered altcoin season.

Source: https://tapchibitcoin.io/mua-altcoin-da-den-chua-su-thong-tri-cua-bitcoin-va-xu-huong-thi-truong.html