Cryptoes undergoes significant changes. Bitcoin (BTC) reached a new historical maximum, but its dominance index (BTC.D) fell from 66% to 64.5%
A decrease in the BTC dominance index inspires optimism in altcoin investors. The market capitalization of altcoins is now growing faster than that of bitcoin.
Analysts predict the altcoin season
According to TradingView, the capitalization of altcoins (Total2) has increased by almost 10% since the beginning of July and recently exceeded $ 1.2 trillion. Meanwhile, the dominance of bitcoin (BTC.D) decreased from 66% to 64.5%, which has become the most significant fall since May.
On July 10, when Bitcoin reached the new ATH in the region of $ 113,000, the BTC.d indicator continued to fall, indicating that the capitalization of altcoins is growing faster than Bitcoin. This is a rare and long -awaited signal for investors in altcoins.
In addition, the Master of Crypto cryptoanalyst noted that bitcoin does not have to fall to begin the altcoin season. If the price of BTC remains stable, and dominance will continue to decline, this can create ideal conditions for the growth of altcoins. This is especially true for low and average capitalization tokens. He emphasized that the intensity of the altcoin season depends on how much BTC.D will decrease, especially on the levels of EMA50 and EMA200.
What is the dominance of bitcoin and why a metric is needed
Investors “hold powder dry”
Another important factor is a large number of stablecoins on exchanges. Often they are called “dry gunpowder”, ready to blow up the market. According to the analyst Cryptoquant Oinonen_T, the USDT and USDC reserves on Binance remain high, exceeding $ 31 billion. At the same time, the reserves of bitcoin on exchanges are reduced. These factors indicate that investors are preparing for the altcoin season.
However, frequent forecasts about the altcoin season in recent years have begun to resemble the story of the “boy who shouted“ wolves ”,” forcing investors to be careful. There is a growing skepticism among retail investors on the market. However, the famous market analyst Michael Van de Poppe believes that skepticism is a natural part of the bull cycle.
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Source: Cryptocurrency
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