Key Points
- Bitcoin ETFs saw a $886 million inflow, potentially sparking a price increase for Bitcoin and altcoins.
- The altcoin season index has decreased from 80 to 31 over the past six months, indicating a possible delay in altcoin season.
Bitcoin [BTC] may soon break its current stagnation. The cryptocurrency’s price was recorded at $67.7k at the start of the week, with trading volume and speculative interest suggesting that BTC was not prepared for a significant uptrend.
However, this trend has started to shift in the last 24 hours. According to data from Farside Investors, the Bitcoin exchange-traded funds experienced an inflow of $886 million on Tuesday, June 4th. This level of purchasing could potentially ignite a change and stimulate speculators and investors.
Altcoin Season Delayed?
The altcoin season index, as per data from BlockchainCentre, showed a reading of 31. This index has been on a downward trend from 80 to 31 over the past six months. A year ago, the index showed a strong BTC season, but this was during the depths of a bear market when Bitcoin was trading at $25k and altcoins were either in a long-term downtrend or consolidation phase.
As of now, even though altcoins might perform well due to the bullish sentiment surrounding Bitcoin, only a select few altcoins might outperform Bitcoin. If the altcoin season indicator can rise above 75, it would signal extreme bullishness across the altcoin ecosystem.
Bitcoin Dominance and Market Trends
The Bitcoin Dominance chart, which represents the market capitalization of BTC as a percentage of the total crypto market cap, has formed a range between 53.9% and 56.3% since April. At present, it is rebounding from the range lows. An increase in the BTC.D signifies that BTC is growing faster than the rest of the market, including Ethereum [ETH].
In the first half of 2021, the BTC dominance fell from 72% to 40.4%. During this period, the altcoin market capitalization (excluding ETH) expanded from $122 billion to $934 billion. Therefore, a strong downtrend in the BTC.D chart is necessary for a true altcoin season to begin.
