Can Bitcoin’s dominance versus altcoins remain this high?

As reported earlier this week, Bitcoin’s dominance over altcoins is incredibly high at the moment. Analysts are therefore wondering whether an alt season could suddenly start now that it seems quite possible that some kind of selloff of this metric (Bitcoin’s dominance over altcoins) is imminent.

Since the beginning of 2023, Bitcoin’s dominance has been increasing, from 40% in January 2023 to over 65% now, an absolute record (not seen since the early years of Bitcoin, when there simply were no other cryptocurrencies).

65%

In practice, this means that Bitcoin represents 65% of the total crypto market cap, while all other coins together represent around 35%.

For example, Ethereum’s dominance has fallen from 20% in January 2023 to 12% now. The second-largest crypto on the market has been struggling lately, even though Vitalik Buterin is increasingly appearing in the trade media to reassure his community.

But Bitcoin’s dominance could soon lose some ground and some observers are even predicting a possible reversal. This is the case, for example, with trader Rekt Capital, who predicts an outright collapse of this benchmark.

Others say that Bitcoin’s dominance is due to MicroStrategy and BlackRock increasingly buying Bitcoins and simply hodling them instead of trading them.