Key Points
- Bitcoin’s dominance falls below 58%, indicating the possible start of altcoin season.
- Altcoins such as XRP, Solana, and ADA are outperforming Bitcoin, reflecting increased market interest.
Despite Bitcoin (BTC)‘s impressive price surge, breaking the $65K resistance and reaching a peak of $92,903.98, its dominance in the cryptocurrency market has slipped below 58%.
In the last 24 hours, Bitcoin saw a 1.34% increase, and over the past week, it rose by 6.35%. Its monthly performance is even more remarkable, soaring by 35.58%, demonstrating its strong market momentum.
Is Bitcoin Losing Dominance?
However, despite Bitcoin’s strong performance, there are signs that the cryptocurrency landscape might be changing. According to a recent analysis by QCP Capital, a Singapore-based trading firm, Bitcoin’s dominance falling below a critical threshold could trigger the rise of altcoins.
Historically, altcoins have thrived when Bitcoin consolidates after a strong rally. Traders often shift profits into smaller-cap coins. But QCP Capital warns that many investors remain cautious, especially as Bitcoin nears the significant $100,000 milestone.
Altcoins Outperforming Bitcoin
Despite investor caution, QCP believes that a combination of a potential Donald Trump victory in the U.S. presidential election and anticipated interest rate cuts by the Federal Reserve could catalyze a robust altcoin rally in the near future.
Over the past two years, Bitcoin has consistently outpaced altcoins. However, recent weeks have seen a shift, with altcoins like Solana, Cardano, and Ripple gaining ground and outperforming Bitcoin.
Latest data from CoinMarketCap shows that Bitcoin has experienced a 6.47% increase over the past week. In contrast, altcoins like Solana, XRP, and Cardano saw hikes of 15.77%, 64.33%, and 48.70% respectively.
This shift is also reflected in the rise of the Altcoin Season Index from 33 to 39, highlighting the growing interest in assets like XRP, Dogecoin, and Bonk. If Bitcoin struggles to regain its dominance, the current trend could mark the early stages of an altcoin season, offering investors the opportunity for greater diversification in their crypto portfolios.
