Key Points
- Bitcoin’s market cap dominance has reached a three-year high, accounting for 56.3% of the total crypto market cap on April 12.
- Altcoins have experienced a significant drop in prices, with many top twenty cryptocurrencies losing more than 15% of their value.
Bitcoin’s Market Dominance
Bitcoin’s market cap dominance has soared to its highest point in three years. This surge was observed on April 12, when Bitcoin accounted for 56.3% of the total cryptocurrency market cap.
As Bitcoin’s dominance grew, altcoins faced a severe blow. Data revealed that many of the top twenty cryptocurrencies by market cap experienced a drop of more than 15%.
Impact on Altcoins
The surge in Bitcoin’s dominance coincided with a significant decline in altcoin prices. This has resulted in a crypto market that is the most “Bitcoin-heavy” since April 2021.
Prominent trader and social media commentator Bagsy noted the impressive rise in Bitcoin dominance, considering the number of new altcoins entering the market daily.
Daan Crypto Trades, another trader, highlighted the difference in the recent drawdown between Bitcoin and altcoins. He stated that while Bitcoin’s hit was minimal, the altcoin sector suffered major damage, wiping out billions of open interest.
Future Prospects
Historically, Bitcoin bull markets have seen a dominance breakout in their early stages. Altcoins usually catch up once Bitcoin enters a period of prolonged consolidation.
Despite performing well in 2024, altcoins have not seen such conditions for a meaningful length of time. However, trader Mikybull Crypto predicts that change is on the horizon. He believes that this is the last shake-off before the altcoin market cap explodes upward, coupled with a downward trend in Bitcoin dominance.
His prediction is backed by a chart comparing Bitcoin and altcoin dominance, drawing parallels with the end of 2020 when Bitcoin’s price action had just broken free from its previous macro trading range below $20,000.
