Key Points
- Bitcoin’s [BTC] recent dip below $90K was accompanied by a 2% decline in market dominance, potentially benefiting altcoins.
- Altcoins like Story IP, Maker, and Hyperliquid saw double-digit recoveries during Bitcoin’s dip.
Bitcoin’s [BTC] recent dip below $90K was marked by a 2% decline in market dominance. This development could potentially provide relief for altcoins.
According to pseudonymous analyst Stockmoney Lizard, this trend of BTC dominance declining as BTC dipped is a new phenomenon. He noted that many altcoins were forming local bottoms while BTC was hitting new lows.
Bitcoin Dominance and Altcoin Recovery
During the drop to $86K, BTC dominance slipped from 62.28% to 60.9%. This decrease in BTC dominance is typically seen as a capital rotation from the king coin to altcoins.
Analysts like Arthur Hayes and Galaxy Digital’s Alex Thorn have projected a $75K-$85K price range for Bitcoin. If this projection holds and the new trend continues, BTC dominance could drop further, potentially providing more relief to the altcoin market.
Meanwhile, select altcoins pumped double digits amidst BTC’s woes. Story [IP] and Celestia [TIA] were up 34% and 22%, respectively, making them among the top daily performers on CoinMarketCap. Hyperliquid [HYPE] and Maker [MKR] also saw double-digit recoveries.
Altcoin Market Status
The altcoin market cap increased from $1.16T to $1.17T during the same period, marking a $10B increase. However, the altcoin season index was at 25, indicating that it was a BTC season.
The ETH/BTC ratio, which measures ETH price performance relative to BTC, surged 8% as BTC dominance declined, boosting some altcoins. However, the ratio faced a hurdle at 0.03 and has declined 32% since December, potentially limiting a strong recovery outlook for the altcoin sector.
In essence, the weak ETH/BTC ratio could potentially hamper a stronger recovery in the broader sector.
