Bitcoin Dominance At 58%: Can Altcoins Still Compete?

In recent weeks, Bitcoin has once again taken the lead over altcoins, without crushing the crypto scene. On October 6, Bitcoin’s dominance reached 54%, showing how much investors are turning to the safe haven that is BTC. But the issue remains the same: while altcoins stagnate, some analysts predict an imminent reversal.

Bitcoin reaches the highs while altcoins struggle

Bitcoin’s dominance recently climbed to 58.8%, an unmatched level since 2021. This peak is accompanied by a price surge, flirting with $67,800 on October 15, representing a 15% increase since October 11. Bitcoin’s price even exceeded $68,000 a day later.

But this surge does not please everyone: for altcoin supporters, this Bitcoin surge is reminiscent of times when digital gold attracts all of the market’s capital, leaving other cryptos stranded.

• Bitcoin reaches a dominance of 58.8% on October 15;
• The price rises to $67,800, its highest level in 10 weeks;
• The Bitcoin/ether ratio continues to decline, reaching its lowest point since April 2021.

However, some experts believe that Bitcoin’s current dominance might be short-lived. According to Moataz Elsayed, crypto analyst, “the reign of Bitcoin is coming to an end ” and the market might soon see a comeback of altcoins.

Towards a new altseason?

As Bitcoin’s dominance nears 60%, speculation around a new “altseason” is increasingly heard. For Benjamin Cowen, an influential figure in the crypto world, BTC might soon fall back, allowing altcoins to shine again. 

For those that don't understand why I care about #BTC dominance, it is because you can just keep your portfolio #BTC heavy throughout a BTC dominance uptrend and outperform a majority of the altcoin market.

I think BTC dominance tops around 60%

— Benjamin Cowen (@intocryptoverse) October 15, 2024

Institutional investors, for their part, continue to flock to Bitcoin, with crypto exchange funds in the United States recording a net inflow of 371 million dollars on October 15.

The market seems divided between those who see Bitcoin’s dominance as a sign of stability and altcoin traders who hope for an imminent reversal. But, if recent history has taught us anything, it’s that in the world of cryptos, trend reversals often happen where least expected.

Thus, according to some analysts, the decline in Bitcoin’s dominance could well mark the long-awaited beginning of a new altseason.