- Bitcoin’s dominance has remained above 50%.
- The altcoin season has yet to start despite recent moves in the market.
Bitcoin [BTC] has experienced impressive price trends since the beginning of the year, and most recently Ethereum [ETH] has also shown significant upward movements.
With ETH’s current trajectory and the spikes in the value of several other assets, the question arises as to whether an altcoin season is underway.
Altcoin season hasn’t started yet
When Ethereum starts to rise, it can usually signal the start of altcoin season. Before the season can fully start, other figures must also show significant movement.
From now on, the Altcoin Season Index is on blockchaincenter.net is at 35. For the index to indicate an ‘altcoin season’, 75% of the top 50 coins must outperform Bitcoin.
Source: blockchain center
Bitcoin dominance is holding back altcoin season
A decline in Bitcoin’s dominance could contribute to the start of altcoin season as traders diversify their holdings. They invest in other cryptocurrencies, shifting the market cap away from BTC.
Currently, the cryptocurrency market cap is approximately $2.55 trillion CoinMarketCap. BTC’s dominance is over 52%, leaving altcoins with less than 50% of the market share. Within this, Ethereum holds 18.2%.
Moreover, BTC price tends to stabilize and remain stable after significant price movement. This stability could prompt market participants looking for short-term gains to sell their Bitcoin and switch to altcoins.
Furthermore, BTC’s high price can be a barrier for new traders, who may opt for altcoins instead. This shift in investments could contribute to a broader redistribution of market capitalization to altcoins.
How Ethereum and other top altcoins performed
Although Bitcoin season is underway, Ethereum and several altcoins like Pepe [PEPE] and Dogwifhat [WIF] have made significant gains recently. Analysis shows that PEPE has outperformed Bitcoin by more than 1,000% over the past three months.
The daily time chart shows several recent all-time highs and a strong bull trend, as confirmed by the Relative Strength Index (RSI).
Likewise, WIF rose over 800% over the same period and remained in a strong bull trend. At the time of writing, WIF is trading around $3.70, up almost 9%.
Source: Santiment
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Ethereum is also experiencing a strong bull trend in the oversold zone, according to the RSI. It is trading at around $3,890, with a modest upside of less than 1%.
These moves suggest that while Bitcoin dominates, significant momentum is building in the altcoin market.