- Bitcoin dominance hits 64.3%, leaving altcoins struggling for momentum.
- Analysts divided on altcoins, with Bitcoin dominance possibly rising to 71%.
- Historical trends suggest potential altcoin rally starting in March 2025.
Bitcoin dominance has surged, reaching levels not seen in nearly four years. According to STEPH IS CRYPTO, a bearish divergence has formed on the Bitcoin dominance chart. This signals a potential shift that could favor altcoins. However, popular analysts remain divided on the outlook for altcoins, with some arguing that Bitcoin’s dominance will continue to rise before an altseason can begin.
Bitcoin Dominance Peaks, Creating Challenges for Altcoins
Bitcoin’s market dominance has surged to 64.3%, its highest point in years. Despite some optimism about altcoins, prominent analyst Rekt Capital warned that Bitcoin’s increasing dominance could spell trouble for altcoin enthusiasts.
In early December 2024, Bitcoin’s dominance dipped below 55%, marking what Rekt Capital sees as the bottom for the coin’s market share. Since then, it has gained 6%, leaving altcoins struggling to reclaim ground. For a true altcoin season to begin, Rekt Capital believes Bitcoin’s dominance will need to rise even further, potentially reaching 71%.
Factors Behind Bitcoin’s Growing Dominance
Several factors are contributing to Bitcoin’s dominance. The post-halving Bitcoin euphoria, along with ETF-driven demand and political influence, such as Donald Trump’s proposal for a strategic Bitcoin reserve, have significantly boosted Bitcoin’s market presence. These factors have left altcoins trailing behind.
Furthermore, Ethereum, the second-largest cryptocurrency, has been underperforming against Bitcoin, reinforcing Bitcoin’s growing dominance. According to Stockmoney Lizards, these combined factors have created an environment where altcoins are struggling to gain traction.
Hope on the Horizon for Altcoins
Despite the dominance of Bitcoin, analyst Cryptowzrd suggests that a potential altcoin season could be on the horizon. Cryptowzrd points to a recurring historical pattern in the OTHERS/BTC ratio, which has shown similarities to past altcoin bull runs.
He believes that a bounce off a critical trendline in early February could signal the start of a new altcoin rally. By incorporating Elliott Wave Theory, Cryptowzrd anticipates that the market could see a significant upward move for altcoins as early as March 2025.