Analyst names signal indicating the start of "altseason"
Matrixport analyst named a signal indicating the possible beginning of the "altseason"
Bitcoin's share of the cryptocurrency market has been unable to cross the 48% mark for a month. Its decline may precede the beginning of the rise in the prices of alternative tokens
Bitcoin's dominance in the crypto market may have peaked, signaling the potential start of an "altseason," according to Marcus Thielen, head of research and strategy at cryptocurrency company Matrixport, CoinDesk writes.
Matrixport is a Singapore-based crypto platform owned by billionaire entrepreneur Jihan Wu. The platform has a monthly trading turnover of $5 billion. Matrixport has $10 billion in assets under management (AUM) and serves clients from 40 countries.
In the first quarter of this year, bitcoin's share rose from 42% to 48%, and since then it has been unable to surpass that level for nearly a full month, Thielen notes. Over the past two years, it has fluctuated between 38% and 48%, with declines from levels of 46% to 48% coinciding with a sharp rise in altcoins.
Experts assessed the prospects for the start of the altcoin season in the crypto market
The total market capitalization of altcoins rose more than 60%, to $1.39 trillion, within two months after BTC's dominance rate dropped from 48% in July 2021. A similar situation occurred in mid-October 2021 and in June 2022 - after Bitcoin's market share declined during those periods, other cryptocurrencies rose in value.
History could repeat itself, Thielen believes. In his opinion, bitcoin's dominance will peak this time around at the same levels as in 2022 - at 45-46% of the total cryptocurrency market capitalization.
"If bitcoin continues to outperform the rest of the ecosystem, it will mean that only bitcoin is valued. That seems unlikely, given the intellectual and financial capacity deployed in other blockchains," the analyst said.
- Analysts call the collapse of FTX the catalyst for a new bullish cycle of cryptocurrencies
- "Your Own Bank. When cryptocurrencies will be available to everyone
- Ethereum's stacking value fell by $1.3 billion after the Shapella fork
- Ethereum's rise in price has brought a newcomer to the top 10 cryptocurrencies
- The Future of Cryptocurrencies: What are the Benefits of Decentralized Finance
- SEC warned of a possible lawsuit by cryptocurrency exchange Bittrex
- Blockchain project Chia applied to the SEC for an IPO
