Bitcoin [BTC] is leading the crypto markets as the break above $10,000 sets in altcoins gains again as well. Moreover, Ethereum has been particularly bullish since the beginning of this year.
On BitMEX, the funding rate on Ethereum and XRP is comparitively higher than Bitcoin [BTC]. This might be due to the fact that in a crypto bull market, the altcoins usually gain above Bitcoin as well.
The systematic risk of altcoins over Bitcoins is considerably higher, so is the risk-reward ratio. Hence, traders might be inclined towards trading altcoins, instead of Bitcoin. Price pushed back after a temporary correction to $240 strongly. Nonetheless, it also failed to break above the swing high around $290.
The gains in 2020 in the markets reflect a similar situation. While the gains in Bitcoin are nearly 40%, the comparative gain in Ethereum and Bitcoin Cash [BCH] are over 3 times (around 120%). The gains in Litecoin (90%) and XRP (50%) have been higher as well.
However, during the bear market of 2020 the dominance of altcoins decreased considerably, causing a big downtrend.
Moreover, some of the other cryptocurrencies with hefty gains are Tezos and Link. Prominent crypto trader, Josh Rager tweeted,
Altseason? More like $ $ $ season
Crypto trader, CryptoFibonacci tweeted on the prospects of already having a bottom in Bitcoin’s dominance or looking for downside up to 60%.
$ Daily Dominance Chart. Bottom here, or do we test that uptrend line? Time will tell. #
Currently, the dominance of Bitcoin over the crypto-markets is at 62.4%, it has increase by about 1% in the last two days after the correction. A break-out from the trend support could increase the dominance of altcoins further.
Do you think that altcoins will continue to gain higher that Bitcoin? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com