Key Insights
- Bitcoin’s dominance in the market has shifted from 65% to 62%, suggesting a turn towards alternative cryptocurrencies.
- Joao Wedson, the CEO of Alphractal, anticipates a major altcoin season in June with several altcoins already showing better performance than Bitcoin.
- Although Bitcoin’s dominance is declining, signs indicate the broader market surge has not yet benefitted other digital assets significantly.
Bitcoin’s (BTC) influence has noticeably reduced this month, igniting optimism for an altcoin season where the rally extends beyond BTC, enhancing values in diverse areas of the cryptocurrency realm.
Wedson foresees this altcoin season commencing in June. He notes that the BTC dominance has significantly dipped over the week, falling from 65% to 62%, disrupting a sustained increase that lasted five months, as per TradingView data.
At the same time, total market capitalization in the cryptocurrency universe has risen from $2.90 trillion to $3.24 trillion, indicating a shift in focus from Bitcoin to alternative coins.
Per Wedson’s statements, the altcoin season is already unfolding, and he predicts that the BTC dominance will drop sharply in the upcoming months. His unique altcoin season index, which evaluates 57 selected altcoins, shows that 37 have performed better than BTC in the last 60 days.
“Even if BTC drops in the coming weeks, most altcoins have already hit their lowest and are unlikely to dip further. A portion of Bitcoin’s $2 trillion market cap is expected to transfer to altcoins. It’s essential to analyze your altcoin against BTC pairs (like ETH/BTC or COTI/BTC),” Wedson remarked in a detailed post on X.
However, broader indicators suggest that the bullish market still primarily benefits BTC. For example, CoinMarketCap’s altcoin index, which surveys the top 100 cryptocurrencies, remains around 27, which indicates a “Bitcoin season.”
Read more: Crypto Daybook Americas: PEPE Signals Altcoin Frenzy as Rampant Ether Outpaces Bitcoin
