Decline in Bitcoin dominance
According to data from TradingView, Bitcoin's dominance in the cryptocurrency market has dropped from 60% last month to 56%, marking a significant downward trend. At the same time, technical analysis shows that Bitcoin's dominance is approaching its long-term support trend line, which may break through a critical technical support level that has lasted for years.
Meanwhile, Ethereum's dominance has also fallen to 12.9%, while the dominance of other cryptocurrencies has increased from 28.1% last month to 31.5%, showing a clear growth trend.
Many market analysts have pointed out that funds are gradually flowing from Bitcoin to other cryptocurrencies, and the decline in Bitcoin and Ethereum's dominance may indicate the arrival of the 'Altseason'.
Offshore funds driving Altseason
However, CryptoQuant CEO Ki Young Ju pointed out on social media that, based on the trading pair data of 'Altcoins/Bitcoin' and 'Altcoins/Stables', the increase in altcoin trading volume is primarily driven by stablecoins and fiat currencies, rather than the rotation of funds from Bitcoin.
The surge in altcoin trading volume is no longer primarily driven by Bitcoin trading pairs, but by stablecoin and fiat trading pairs. This indicates that market growth is sourced from real capital inflows, rather than from the rotation of funds within Bitcoin.
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