My wallet for those who want to copy securely

With Bitcoin dominance hitting a high of 53%, many investors are wondering: Is there a chance for an altcoin bull run coming soon? And what can we conclude from this high dominance? In this article, we will combine Bitcoin dominance analysis, its impact on altcoins, and how to anticipate their bull run.

What is Bitcoin Dominance and Why Does It Matter?

Bitcoin Dominance is the ratio of Bitcoin’s market cap to the total market cap of the cryptocurrency market. Its rise to 53% reflects the current state of the market:

  • Bitcoin is a relatively safe option in the digital market.

  • Low liquidity for altcoins, putting them under pressure at this point.

The impact of Bitcoin's dominance on altcoins

  1. Bitcoin Dominance Rise:

    • This usually means that investors are focusing on Bitcoin, especially during times of uncertainty or high market volatility.

    • Altcoins often suffer from low liquidity and weak momentum in this case.

  2. Low dominance:

    • When Bitcoin's dominance declines, liquidity is pumped into altcoins, giving them the opportunity to grow faster.

    • Altcoin season usually starts when Bitcoin dominance drops below 50% and continues to gradually decline.

When do altcoins start to rise?

There are pivotal levels in Bitcoin that indicate the potential for altcoins to rise:

  1. Less than 50%:

    • When Bitcoin dominance breaks the 50% barrier, money will gradually start flowing into altcoins.

  2. Between 45%-50%:

    • This area is considered a transitional phase; large altcoins like ETH, ADA, and SOL are starting to move slowly.

  3. Less than 40%:

    • This is the real altcoin season, where all altcoins, including small ones, start making big gains.

Factors affecting the rise of altcoins

  1. Bitcoin Stability:

    • If the price of Bitcoin stabilizes in a narrow range without major fluctuations, altcoins get a chance to grow.

  2. Major Tech Events:

    • The release of new updates or projects can stimulate demand for altcoins.

  3. Total market liquidity:

    • New liquidity entering the market helps altcoins make gains.

How do you benefit from the current situation?

  1. Bitcoin Dominance Tracking:

    • Focus on the dominance levels, and if you notice a gradual decline, it may be an opportunity to enter altcoins.

  2. Choosing promising currencies:

    • Invest in strong projects with good fundamentals and strategic partnerships.

  3. Risk management:

    • Diversify your portfolio between Bitcoin and altcoins according to market indicators.

Conclusion

Bitcoin’s dominance rising to 53% suggests that investors are turning to the relative safety of the largest cryptocurrency. However, this situation could change if Bitcoin’s dominance starts to gradually decline. Then altcoins could start to rise, especially when dominance breaks the 50% barrier or lower.

Stay on top of market movements and follow flexible investment strategies to take advantage of opportunities in both directions, whether you prefer Bitcoin or altcoins. 🚀