Bitcoin (BTC) Dominance Falls Lowest Since Feb 2018, Here’s How Altcoins can Benefit

By Prashant Jha
Published December 9, 2021 Updated December 9, 2021
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Bitcoin (BTC) Dominance Falls Lowest Since Feb 2018, Here’s How Altcoins can Benefit

By Prashant Jha
Published December 9, 2021 Updated December 9, 2021

Bitcoin (BTC) price slid below $50,000 again earlier today and currently trading at $49,875, however, the market dominance of the top cryptocurrency dropped to a near four-year low. BTC dominance fell to 37.18% which is the lowest since February 2018, as per Coingecko data. This is the biggest plunge for the top cryptocurrency in a bull market.

Bitcoin
Source: Coingecko

During the mid-year market crash in May-June, BTC flirted closely with the 40% mark and was on the verge of tipping below, but managed to make a recovery when the bulls arrived again. However, the BTC dominance had recovered above 40% at the time of writing and was at 40.42%.

Source: TradingView

A decline in Bitcoin’s market dominance is often seen as a perfect opportunity for an altcoin season. The alt-season often comes after a massive BTC rally and if we compare to the 2017 bull run, the alt-season arrived in 2018 after BTC hit its all-time high of near $20K by the end of December 2017.

Is Alt Season Around the Corner?

Bitcoin pundits had predicted a bullish final quarter and gave a price target of near $100,000 for the top cryptocurrency. However, a major flash crash at the start of the month saw the whole crypto market lose nearly 20% of its market share and all price targets went out of the window. Ethereum (ETH) was the fastest to the recovery, especially against BTC.

The ETH/BTC pair continues to surge to new highs and currently trading at 0.088, a multi-year high, despite the market downtrend, thus ETH could very well lead the alt-season in the coming months. ETH is currently trading at $4,391 and only 9% short of its ATH of $4,859.

Source: TradingView

The ETH/BTC pair hit the highest of 0.156 in 2017, and it is currently short by 50% from that level, but looking at the declining BTC dominance, the pair could eye reaching the high point in the coming months. Other major altcoins have made a good recovery from the December first week flash crash and looking set to build a rally.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Prashant Jha
1277 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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