Yes, altcoins are currently at risk of more losses as the market dominance shifts heavily toward Bitcoin. Several key indicators suggest we’re deep into a Bitcoin season, meaning capital is flowing primarily into BTC while altcoins struggle. Here’s why:
1. Bitcoin Dominance Is Rising
Bitcoin dominance has been climbing, nearing or surpassing 55-60%, indicating investors are prioritizing BTC over alts. Historically, when dominance rises, altcoins tend to bleed further.
2. Liquidity Is Concentrated in BTC & ETFs
The introduction of Bitcoin ETFs has led to a massive influx of institutional capital into BTC. Many investors are hesitant to bet on riskier altcoins when Bitcoin itself is seeing strong performance.
3. Altcoins Are Losing Key Supports
Many altcoins have already lost critical support levels against both USD and BTC pairs, leading to more downside potential. If Bitcoin continues to rise, altcoins could see even more capital drained.
4. Macro Uncertainty & Risk Aversion
With global economic uncertainty, investors are favoring Bitcoin as a safer crypto asset, avoiding highly volatile altcoins.
What Could Change the Trend?
For altcoins to recover, we’d need:
Bitcoin to consolidate or retrace
Increased speculation and retail participation
A major catalyst like Ethereum ETF approval
If Bitcoin keeps rallying without pausing, altcoins could continue their downward spiral. Are you looking at any specific altcoins, or just monitoring the broader trend?
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