Bitcoin (BTC) market share has recently dropped significantly, with market capital clearly shifting towards other mainstream cryptocurrencies, and the "Altcoin Season" is stirring.
According to TradingView data, Bitcoin's market share decreased by 5.8% in a week, falling below 61%, marking the largest weekly drop since June 2022, and also hitting the lowest level since March this year.
Bitcoin's market share has declined, accompanied by a rapid expansion of the overall cryptocurrency market cap. In the past three weeks, the total cryptocurrency market cap has risen from $3 trillion to $3.8 trillion, primarily driven by Ethereum leading the charge, with altcoins rising to replace Bitcoin as the core focus of market capital.
Bitcoin hovers, altcoins race.
As Bitcoin hovers below $120,000, its positive correlation with other cryptocurrencies has also weakened. Research firm Alphractal pointed out that such a trend often indicates that market volatility is about to increase, which could trigger a chain liquidation of leveraged positions.
Alphractal posted on social media:
There is a particular chart worth noting, which is the "Correlation Heatmap."
The chart shows that the average correlation between mainstream coins and Bitcoin is rapidly declining, and has even turned negative. In other words, altcoins are starting to "no longer follow Bitcoin." Historically, a decrease in correlation is usually a precursor to rising market volatility, often accompanied by large-scale liquidation waves.
The "Altcoin Season" is stirring.
According to Blockchain Center data, the "Altcoin Season Index" is gradually approaching the threshold for "Altcoin Season."
This indicator tracks the performance of altcoins relative to Bitcoin over the past 90 days. When more than 75% of the top 50 cryptocurrencies (excluding stablecoins) outperform Bitcoin, it officially announces the arrival of the "Altcoin Season."
According to statistics, currently only about 53% of altcoins are outperforming Bitcoin, which is still a distance from the 75% threshold, but this also means that there is still room for market upside.
It is worth mentioning that Ethereum surged 27% in the past week, driving other altcoins to hit new highs in several months. If more cryptocurrencies follow suit in the coming weeks, with gains surpassing Bitcoin, the market may see a wave of capital led by altcoins as early as the beginning of August.
"Bitcoin's market share falls below 61%! Will altcoins welcome the 'peak season' as early as the beginning of August?" This article was first published on (BlockTempo).
