Bitcoin is on a roll! Its price has been climbing, and it’s now controlling a whopping 60% of the entire cryptocurrency market. This means investors are choosing Bitcoin over other cryptocurrencies, making it the leading player in the game.
Bitcoin’s Dominance: A Peak or a Plateau?
Bitcoin expert Benjamin Cowen thinks this dominance might be reaching its peak. He believes the recent surge in Bitcoin’s control might be coming to an end. He’s keeping a close eye on the relationship between Bitcoin and Ethereum (ETH/BTC), as this could determine if Bitcoin’s dominance will continue to rise or plateau.
Cowen points to two factors that could influence the future of Bitcoin’s dominance:
- Cyclical View:
Looking at past trends, there was a similar rally in altcoins (cryptocurrencies other than Bitcoin) four years ago, followed by a decline in December. - Monetary Policy View: In 2019, altcoins didn’t bottom out until the end of a period called “Quantitative Tightening” (QT), which hasn’t happened yet.
Altseason on the Horizon?
Another expert, Ash Crypto, believes that the relationship between Bitcoin and altcoins is cyclical. Historically, when Bitcoin’s dominance rises, altcoins tend to decline, and vice versa. This suggests that an “altseason” (a period of strong growth in altcoins) might be on the horizon.
Ash Crypto points out that in the past two cycles, altcoins have surged in dominance every 8 months after a Bitcoin halving event (an event that reduces the rate at which new Bitcoins are created). We’re currently 7 months into this cycle, and the current market conditions could trigger a reversal, leading to a potential “altseason 2.0.”
So, while Bitcoin is currently dominating the crypto market, its future dominance is uncertain. The coming months will be crucial in determining whether Bitcoin’s reign continues or if altcoins are poised to take center stage.
