Bitcoin’s market share has surged to 52% according to certain estimates following its unsuccessful attempt to exceed the $71,000 threshold. As of Thursday (March 28th), its current value is slightly around $70,000.
Altcoins have undergone significant retracement, as evidenced by the growing dominance of BTC. According to CryptoPotato, Ethereum (ETH) and other prominent altcoins have experienced a substantial decline, resulting in a $50 billion decrease in the cryptocurrency market capitalization, which now stands below $2.8 trillion.
Market watchers suggest that the halving of Bitcoin might potentially diminish the dominance of cryptocurrencies. Michael van de Poppe, an expert, has said that the decline in BTC’s dominance may pave the way for a new optimistic trajectory for altcoins.
After the halving, the #Bitcoin dominance is likely to start falling substantially.
The $BTC valuation of altcoins are super low, hence why there’s a strong interest in purchasing them. pic.twitter.com/8eDWKBmGXZ
— Michaël van de Poppe (@CryptoMichNL) March 27, 2024
The analysis conducted by Van de Poppe places significant emphasis on the pivotal function of Bitcoin as a leading indicator within the wider cryptocurrency sector. An established market pattern indicates that altcoins have a tendency to surge in value following significant rise in BTC. This is because retail and venture capital tend to shift their investments towards altcoins, which have lower values but provide prospective profits.
According to research from CoinCodex, BTC is achieving a significant level of domination by early 2021. In its most recent analysis, Grayscale presented a market trend in which the growing dominance of BTC leads to a surge of altcoins. Although BTC has experienced recent price changes, there is still excitement about the possibility of a new ATH (Average Trading Value) before the next April halving.
Furthermore, market analysts claim that the positive trend of BTC may exert pressure on short traders, potentially leading to the principal asset attaining levels that are considered “conservative” and surpassing $100,000.
