Bitcoin’s price has been a bit of a rollercoaster lately, but overall, it hasn’t changed much. This shows there’s a lot of uncertainty in the market, even with Donald Trump’s pro-crypto stance. But, according to blockchain analytics firm Glassnode, there are signs pointing to good things for Bitcoin.
Bitcoin Dominance is Rising
Glassnode reported that Bitcoin’s dominance (its share of the overall crypto market) is climbing after dipping to around 54% in December 2024. After a price rebound in January, it’s now over 57%. This means investors are favoring Bitcoin amidst the market uncertainty.
This reminds us of 2020-2021. Bitcoin’s dominance hit a low of 60% in November 2020, then rose to 69% in January 2021 before falling again. It eventually peaked around 72%, just before Bitcoin’s price soared to $64,800 (from a previous high of $19,764).
If history repeats itself, we could see Bitcoin hit at least $128,000 this time around. However, Glassnode says Bitcoin usually takes off after its dominance peaks and starts to fall.
Altseason: On Hold?
This period, called “altseason,” is when other cryptocurrencies (altcoins) outperform Bitcoin. Investors shift their focus to altcoins, hoping for bigger returns. While Bitcoin would still see gains, altcoins would get a bigger capital influx.
With Bitcoin’s dominance rising, altseason seems delayed. The altseason index is currently at 46, leaning towards a “Bitcoin season.” The uncertainty in the market is likely a factor. Some predict altseason will start soon, perhaps in March, but others think it might not happen this cycle due to the massive increase in altcoins over the past four years.
The Bottom Line
At the time of writing, Bitcoin is trading around $104,680, up slightly for the day. While the market is uncertain, the increase in Bitcoin’s dominance is a positive sign for many, suggesting a potential price rally could be on the horizon. However, whether altseason will follow remains to be seen.
