The only thing moving crypto markets at the moment is big brother Bitcoin. The king of crypto has reached its highest market dominance this year as altcoin apathy continues and their bear market deepens.
Bitcoin is usually a first mover in major market cycles, with altcoins lagging behind. This has been particularly evident in the current cycle, with most altcoins still languishing 80-90% down from their peaks.
Bitcoin Dominance Over 50%
Bitcoin dominance has reached its highest level in 2023 this week at 52.17%, according to TradingView. It topped 50% in late June but fell back to 49% in August.
On January 1, BTC’s market share was just 42% so it has been steadily increasing all year in a clear uptrend.
Moreover, BTC dominance dipped below 40% in late November following the fallout of the FTX collapse. The last time it was higher than current levels was in early April 2021, six months before the bull market peak.
The trend may continue as the halving approaches, and Bitcoin attracts liquidity and attention. However, some analysts have predicted a final flush-out first.
Total market capitalization remains around $1.1 trillion, meaning the market share is at the expense of altcoins. Ethereum has tanked to a seven-month low, and the rest of the altcoin market is following suit.
On October 19, MN Trading CEO Michaël van de Poppe said altcoins are in the last part of the bear cycle. The sentiment has gone, and the pain is palpable, he added.
“The bear market has been the longest-lasting bear market for altcoins.”
Many altcoins peaked in May 2021, six months before Bitcoin and the broader crypto market. It stands to reason then that they’re still lagging half a year behind ‘big brother’ BTC following a 29-month bear market.
Crypto analyst “Moustache” observed a breakout from a two-and-a-half-year falling wedge for total market cap excluding Bitcoin.
“If you think altcoins look bearish here, you’re about to be surprised imo,” he said.
Crypto Market Outlook
The short-term outlook for Bitcoin and its brethren is still pretty grim, especially for altcoins. The total market cap has dropped 1.1% on the day, with a sea of red enveloping the altcoins.
BTC remains above a key resistance-level-turned-support at $28,310 and has made 5.4% over the past week.
However, Ethereum is down again at $1,552, Binance’s native BNB has lost 1.5% in a fall to $210, and XRP is down 1.8% to $0.481.
Larger losses have been measured for Polygon, Litecoin, Shiba Inu, and Avalanche.
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