How did altcoins perform?

In the span of five days, altcoins surged dramatically. The decline in Bitcoin's dominance and the rapid rise of TOTAL2 prove this, and we will explore it further below. BTC.D tested the resistance level around 62% in February and March, and strongly broke through this area in April.

After reaching a local high of 65.38%, BTC.D temporarily fell to 61.89%. The decline in BTC.D indicates that the market capitalization growth rate of altcoins has surpassed that of BTC.

However, in the past five days, Bitcoin's dominance has recovered — indicating that a comprehensive altcoin season has not yet arrived.

Apart from Bitcoin, the market capitalization of altcoins has once again tested the significant threshold of $1.17 trillion. Like BTC.D, TOTAL2 can also be subjected to technical analysis. In fact, we can see that the market capitalization of altcoins is on an upward trend but encountered strong resistance near the February high.

A move above $1.31 trillion would encourage altcoin investors.

However, Tether's reserve indicators have raised warning signals. As the most popular stablecoin in the market, an increase in USDT reserves indicates an increase in market purchasing power. In other words, this would be accompanied by a strong bullish market trend.

Since mid-March, Tether's reserves have been decreasing. This reflects a decline in purchasing power, while at that time, BTC's price was nearing an all-time high. The last time Tether reserves experienced such a significant decline was in June to July 2024.

In just over a month, the market capitalization of altcoins has shrunk by $275 billion, a decline of 23.5%. From February to April, the market capitalization of altcoins has dropped by 30%. Additionally, it remains unclear whether Tether reserves will continue to decline — this is an interesting factor worth monitoring.