Bitcoin Dominates as Altcoins Struggle to Recover
Key Takeaways
- Bitcoin continues to dominate the crypto market with a market share of over 63.8%.
- Ethereum has significantly lost value compared to Bitcoin – down 56.6% since January.
- The altcoin market capitalization shows short-term recovery but remains in a downtrend.
- The Altcoin Season Index stands at 20 – far from a true altcoin rally.
- Long-term trends point against sustainable altcoin gains.
Bitcoin Remains the Market Leader
Bitcoin Dominance (BTC.D) measures Bitcoin’s share of the total crypto market capitalization. Currently, it stands at over 63.8%. This is a clear signal: capital is flowing primarily into Bitcoin – not into altcoins. This dominance level was already a key support area in early 2020 and has once again established itself as such. A further increase is likely.
Ethereum Losing Ground
As the largest altcoin, Ethereum (ETH) plays a key role in market sentiment for altcoins. However, since its yearly high in January at USD 3,744, ETH has significantly underperformed compared to Bitcoin – down 56.6%. Network activity and transaction fees are also declining. The ETH/BTC ratio has fallen to levels last seen in summer 2019. A sustained recovery is not currently in sight.
Altcoin Market Shows Weak Structure
The total market capitalization of altcoins excluding Ethereum (TOTAL3) shows a slight recovery. In early April, it dropped below USD 750 billion but has since climbed just above that level. Nevertheless, the trend remains negative. To speak of a true trend reversal, key resistance levels at USD 780 billion and USD 853 billion would have to be broken.
No Altcoin Season in Sight
The so-called Altcoin Season Index currently stands at 20. A value of 75 or higher indicates an altcoin season – a phase in which 75% of the top 50 coins outperform Bitcoin. The market is far from reaching that level. The current situation is classified as a Bitcoin season, meaning altcoins are lagging behind.
Caution with Short-Term Altcoin Gains
Over the past two weeks, some altcoins have posted price gains. However, these movements mask the long-term market situation. Structural weakness remains. As long as Bitcoin continues to attract capital and Ethereum remains weak, it will be difficult for altcoins to establish sustainable momentum.
Our Assessment
If you are invested in altcoins or considering investing, you should closely monitor current market trends. Bitcoin’s dominance and Ethereum’s weakness are clear warning signs. Short-term gains in individual altcoins may be tempting, but the broader trends argue against a sustainable rally. Review your strategy and rely on solid analysis rather than short-term hype.
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Sources
- TradingView
- Blockchain Center
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $93,691.00 |
| 24h % | 5.82 % |
| 7d % | 11.62 % |
| 30d % | 6.70 % |
| 60d % | -2.89 % |
| 1y % | 41.39 % |
| Market Cap | $1,860,222,438,650.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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