A bullish wave sweeps once again every corner of the crypto market while Bitcoin has reached new price levels and altcoins have recorded increases. During the past week, the OG play experienced consecutive days of price increases, reaching a historic summit of $ 118,731 on July 11. Despite this remarkable feat, the data show that the dominance of the flagship part has slightly decreased. The eminent market personality Matthew Hyland even said that altcoins could have a greater increase in potential, many of them currently progressing independently of the influence of Bitcoin.
In short
- Bitcoin reaches a new record, but its dominance index goes from 66 % to 64.5 % while altcoins outperform.
- Ethereum increased by 17 % in a week, raising the ETH/BTC ratio by more than 8 %, strengthening the momentum of the Altcoin season.
- Stablecoins reserves on exchanges exceed $ 31 billion, indicating that traders are ready to deploy fresh capital in altcoins.
- Analysts are planning a high season of altcoins while Bitcoin outputs are increasing and low capitalization parts show independent growth trends.
Altcoins soar as the dominance of bitcoin decreases
The Bitcoin dominance index (BTC.D) increased from 66 % to 64.5 %, with 27 altcoins exceeding the firstborn of the token in the last 90 days. TradingView data also show that capitalization of the Altcoin Market (Total2) has rebounded over 10 % Since the beginning of the month.
Commenting on this recent trend, Hyland noted that ” Altcoins explode»Even with a relatively stable dominance of bitcoin. Market analysts assumed that if the dominance of OG assets were to fall from its current level to around 45 %, the Altcoin market could record even larger flows.
Over time, the dominance of Bitcoin was used as a reference to measure the Altcoin season. A decline in dominance is generally interpreted as the start of an “altseason”, where the Altcoins market is gaining percentage. However, the current divergence of altcoins in relation to the dominance of the BTC could point out a new injection of liquidity on the Crypto market.
Ethereum rally feeds the momentum of the Altcoins season
Ethereum, which is second only behind the BTC in terms of market valuation, has increased by more than 17 % since the start of the week. During this period, the ETH/BTC ratio, used to analyze Ether's performance compared to bitcoin, increased by 8.39 %.
Analysts like Michael Van de Poppe believe that the market is ready to enter In “The last easy phase and the largest upward phase never observed on altcoins.”
Trading altcoins is difficult, which is why downward corrections are extremely complex and enormous upward yields.
Michael Van de Poppe
Santiment also shares this point of view, saying that the Altcoin season began according to their analysis. The Crypto research platform added that as long as the OG part remains above the psychological level of support for $ 110,000, the traders will probably transfer their gains to altcoins, further strengthening the sector.
Highboring stable and withdrawals of Bitcoin: is the Altcoin season launched?
Another key trend that supports this phenomenon is the large quantity of stable -coated stables on exchanges. Often called “dry powder”, these assets are kept in reserve while waiting for a market opportunity.
According to cryptocurrency analyst Oinonen_T, a clear diagram is taking shape on Binance. Stablecoins reserves, such as USDT and USDC, remain highwith more than $ 31 billion in total value. On the other hand, the BTC reserves on the Exchanges decrease.
Here is what it is:
- Many investors move their bitcoin outside the exchanges to private wallets to keep it safe in the long term.
- At the same time, the stablecoins reserves continue to grow because the traders keep these funds on the exchanges as “dry powder” – a capital waiting to be used.
- This shows that, while investors lock their bitcoin, they also keep large amounts of stablecoins ready to be deployed when the appropriate market opportunity arises.
The commentator crypto known under the pseudonym Master of Crypto argued that Altcoins can still follow a bullish trajectory With the drop in the price of the BTC. He explained that if the price of the first-baby assets evolves laterally while his influence decreases, this could constitute the perfect scene for a season of Altcoins,, especially for low and medium capitalization parts.
He also clarified that the intensity of the Altcoins season will depend on the magnitude of the withdrawal of the BTC.D under the levels of the EMA50 and EMA200.
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