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Bitcoin dominance reached 58 percent after 3.5 years: Is it a wake-up call for altcoins?

Bitcoin dominance, which is closely followed for possible increases in altcoins in particular, reached 58 percent for the first time in 3.5 years.

Bitcoin dominance, which shows Bitcoin's share in the total market value of cryptocurrencies, reached its highest level since April 2021. Dominance, which has been moving between 56.8 percent and 57.7 percent for weeks, reached 58 percent today for the first time in 3.5 years.

This data is closely monitored to understand when strong movements will begin, especially in altcoins. Because the periods when dominance peaks and begins to decline historically coincide with the beginning of bull markets in altcoins.

Some analysts believe that the dominance, which has risen to 58 percent, is now very close to its peak. MN Consultancy founder Michael van de Poppe predicts that the dominance is in the region where the bear market in altcoins will end. Emphasizing that everything depends on ETH, the analyst commented, “Considering the current climate, it seems like we are close.”

While Bitcoin dominance continues to rise, the ETH/BTC parity has also fallen to its lowest level in 3.5 years. The parity, which has been in a steady decline since September 2022, fell below 0.04 after years today and saw 0.03955. Ethereum had abandoned the Proof of Work (POW) mechanism in September 2022 and switched to Proof of Stake (POS). Ether has lost 53 percent of its value against Bitcoin since this update called “Merge.”