BITCOIN’S DOMINANCE MAY HAVE PEAKED AS ALTCOINS GAIN TRACTION 

Bitcoin’s market dominance may have reached its zenith as alternative cryptocurrencies begin to gain traction, according to industry experts.

Crypto analysts have observed a slight decline in Bitcoin’s market share, prompting speculation that it may have hit its high point as focus shifts towards altcoins. “Bitcoin’s dominance has likely peaked,” Michaël van de Poppe, founder of MNTrading, suggested in a May 1 X post, noting that the low point for altcoins may have passed. “Altcoins are starting to gain ground in their pairings with Bitcoin, signaling the start of a rotation,” he added.

A decline in Bitcoin’s dominance could indicate an impending rise in the altcoin market, as investors move their capital from Bitcoin — traditionally seen as a more stable value store within the crypto market — to the typically more volatile altcoins. “Bitcoin dominance is currently losing significant support,” stated crypto trader Matthew Hyland, who plans to wait for the weekly close to confirm or refute the trend.

Currently, Bitcoin accounts for 53.90% of the total cryptocurrency market capitalization, a drop of 1.75% over the last week but an increase of 4.63% since early 2024, per TradingView.

Bitcoin’s dominance reached its highest point this year on April 14, hitting 56.42, as shown on TradingView. “With Bitcoin’s dominance decreasing, if prices remain volatile for a few months, altcoins could benefit. Many altcoins are performing surprisingly well today,” noted the IncomeSharks trading team in a May 1 X post.

Cryptocurrencies like Solana, Pepe, and Dogwifhat have seen slight gains in the last 24 hours, with increases of 2.76%, 3.04%, and 3.25% respectively, according to CoinMarketCap.

This reduction in dominance coincides with a 10.44% drop in Bitcoin’s price over the same week, and a 4.89% decrease over the past 24 hours.

Yet, the prevailing market sentiment remains skeptical about the peak in Bitcoin’s dominance, with rising fear levels reflecting market uncertainty, potentially prompting traders to move their investments back to Bitcoin instead of riskier digital assets. According to The Crypto Fear and Greed Index, May 1 marked a significant peak in market fear, the highest since the year’s start, dropping to a fear level of 43 from the previous day’s neutral score of 54.

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