Bitcoin dominance teeters at 50% as ETH, altcoins gain traction
April 25, 2021. Summarized by summa-bot.
Compression ratio: 34.5%. 1 min read.
The cryptocurrency market could be approaching a speculative frenzy as more capital is reallocated from BTC to altcoins.
Bitcoin (BTC) dominance briefly fell below 50% last week for the first time since January 2018, sending a strong signal that more speculative bets on altcoins was on the rise.
The Bitcoin dominance index, which measures BTC’s market capitalization relative to the broader cryptocurrency market, reached a low of 49. 35% on Thursday, according to CoinMarketCap. At the beginning of 2021, BTC dominance was 70. 68%.
1/ on thursday, bitcoin dominance fell below 50% for the first time in nearly 3 yearsthe last time this happened was January 2018, and that cycle last about 6 monthsseeing a lot of folks chasing returns by moving further out on the risk spectrum94 coins w/ mcap > $1B pic. twitter. com/s2BX48rqao— Meltem Demirors (@Melt_Dem) April 25, 2021
Analysts are divided about the pace and timing of the so-called alt season, a period of the market cycle where many altcoins surge against the dollar and Bitcoin.