Bitcoin’s been king lately, gobbling up most of the crypto investment. Right now, it controls around 60% of the market, but that number’s been climbing.
The 71% Threshold
One analyst, Rekt Capital, says a big thing happens when Bitcoin’s dominance hits 71%. Historically, when Bitcoin’s market share reaches this point, it gets “rejected”—meaning it starts to fall, and altcoins (all the other cryptocurrencies) suddenly become much more attractive.
Bitcoin’s Reign and Altcoin Slump
This Bitcoin dominance has been pretty consistent, even when prices dip. Institutional investors are piling into Bitcoin, partly because of new Bitcoin ETFs and because some countries see it as a potential reserve asset. This has left altcoins in the dust. While some like Solana and XRP have had brief moments in the sun, the money keeps flowing back to Bitcoin.
Past Performance: A Guide to the Future?
Rekt Capital’s analysis shows this 71% rejection pattern has happened three times before. Each time, Bitcoin’s dominance fell significantly over several months, creating a boom for altcoins. The most notable example was in 2021, where a brief surge above 72% was followed by a five-month decline in Bitcoin’s dominance, leading to a huge altcoin rally.
Will History Repeat Itself?
Bitcoin’s dominance is still rising, not quite at 71% yet. If it hits that mark and gets rejected again, altcoins could see some serious gains. However, this time, Ethereum might not be the biggest winner. Ethereum’s been struggling to keep up, with other altcoins like XRP, Solana, and Dogecoin gaining more traction.
