The prices of Bitcoin and Ethereum have recovered this week from the decline imposed by recent geopolitical tensions, with Bitcoin showing relatively stronger performance, especially after global fears of the ongoing war have subsided.
According to a report from the Binance platform, the price of Bitcoin has seen a slight decline in its market dominance, but this does not necessarily indicate an imminent new season for altcoins.
Binance indicated that Bitcoin's resilience reflects a growing trend towards high-risk assets amid a slight improvement in the macroeconomic environment.
After Bitcoin's price dropped to $98,000, it regained strength to close the week at around $107,000, reinforcing its position as a hedge asset amid global turmoil.
As for Ethereum, despite following a similar path, it has suffered from wider fluctuations and a weaker recovery, with the price dropping to $2,130 before ending the week below its opening price of $2,480, reflecting its limited role as a safe haven compared to Bitcoin.
The report added that the continued outperformance of Bitcoin is uncertain, but its strong recovery may reflect market confidence in a sustained upward trend, with its dominance remaining at a high level of around 66%.
In contrast, the momentum related to the expectations for the altcoin season is weakening, as investors question the timing of the market's move towards these assets.
Historically, periods of Bitcoin stagnation have allowed liquidity to shift towards more volatile altcoins, often accompanied by the emergence of new technological trends such as initial coin offerings (ICOs) or decentralized finance (DeFi).
However, in this cycle, emerging trends such as 'meme coins', 'Bitcoin FI', and 'DePIN' do not seem sufficient to trigger a similar boom, especially with the market saturated with various projects and cryptocurrencies.
Binance points out that any new capital inflow will be distributed across a large number of assets, which weakens its impact and makes the market in need of stronger catalysts to trigger a new wave of growth in altcoin prices.
