Both retail and institutional adoption and interest in Bitcoin continues to see notable growth following the recent price upswing over the past week, which has led to a huge rise in BTC's dominance over other cryptocurrency assets in the market.
Bitcoin's Market Dominance Almost Over
With Bitcoin persistently witnessing a significant price rally, its dominance in the general crypto market has surged to the 60% threshold, suggesting strong confidence among investors. Benjamin Cowen, the Chief Executive Officer (CEO) and founder of Into The Cryptoverse pointed out the recent spike in control while offering insights on the development.
This rise in market sovereignty shows that traders are still choosing Bitcoin over other cryptocurrencies, suggesting the growing demand for BTC as a dependent asset in a tumultuous market. It also indicates that BTC may gain more traction, highlighting its position in the market as the leading asset during a time of optimism.
Since Bitcoin's dominance reached 60%, Benjamin Cowen has underscored his extreme optimism for the ALT/BTC pairs, pointing out that the level might be the top. “I think there is a good chance that 60% is the top,” he stated.
After examining the development, the expert believes the significant upswing in Bitcoin market control is either over or drawing closer to its end. nevertheless, the bottoming of the ETH/BTC pairs will ultimately determine whether Bitcoin's market dominance reaches a new high or a lower high in December.
Thus far, the market expert has highlighted two key factors under the cyclical view, and the monetary policy view for investors to consider that may cause the ALT/BTC pairs to hit a final low and then turn BTC’s dominance bullish once more in December.
According to the founder, exactly four years ago, in mid-November, the ALT/BTC pairs also had a two-week rally before descending again in December. This factor is especially crucial for those who consider the cyclical view.
Meanwhile, for those who prefer the monetary policy view, Cowen underlined that the ALT/BTC pairs in 2019 did not bottom until the conclusion of QT, which has not yet taken place.
BTC And Altcoin Dominance Correlation
As the market continues to demonstrate upward momentum, market expert and trader, Ash Crypto has also shed light on the connection between Bitcoin and Altcoin market dominance, suggesting that the altseason will soon be upon us.
Ash Crypto noted that historically, there has been an inverse correlation between BTC and altcoin dominance. In the last 2 cycles, this connection has been particularly evident by altcoin's market dominance surging amidst a drop in BTC's market control.
Specifically, this has occurred every 8 months in the past following the Bitcoin Halving cyclical event. Meanwhile, we are currently in the 7th month since this cycle's Halving. With the dominance of Bitcoin and altcoin positioned at crucial levels, Ash Crypto expects a potential reversal in the near term that will trigger the much-anticipated altseason 2.0.
Featured image from Unsplash, chart from Tradingview.com
