Bitcoin BTC’s Market Share Reaches Highest Level Since 2021, While Altcoins Falter

Bitcoin's (BTC) market dominance hit a 3.5-year high, nearing 60%, as altcoins failed to match its momentum.As Bitcoin's price rose sharply, the rest of the crypto market mostly stayed flat or declined.

However, some experts predict that Bitcoin's dominance may not last long and could eventually reverse.

Bitcoin's Market Dominance Hits a 3.5-Year High

Bitcoin's market share has reached its highest point since April 2021. As of October 15, its dominance hit 58.77%, according to TradingView. This marked a significant milestone for Bitcoin, with its price clamped around $67,800.

The rise in Bitcoin's price and market share came as altcoins remained stagnant, showing little to no growth over the past 24 hours.

Historical trends show that altcoins tend to struggle when Bitcoin's dominance rises. This time was no different. Bitcoin gained 2.29% in value in the past day, trading at $67,127, while most altcoins traded flat or saw slight declines.

Many traders and analysts view Bitcoin's market dominance as a double-edged sword. While it signifies Bitcoin's strength, it also suggests that altcoins could be left behind in the short term.

The rise in Bitcoin's price has also pushed its market capitalization to $1.33 trillion and its volume to $49 billion. Yet, despite this dominance, some investors believe it might not last. They argue that while Bitcoin's dominance has peaked, the focus could soon shift to altcoins.

Experts Weigh In on Bitcoin's Dominance

While Bitcoin's dominance rose, some crypto experts believe this might be temporary.

ICT Crypto founder Benjamin Cowen predicted on October 16 that Bitcoin's dominance would peak at around 60%. He says a pullback could follow once Bitcoin reaches this level, opening the door for altcoins to rise.

For those that don't understand why I care about #BTC dominance, it is because you can just keep your portfolio #BTC heavy throughout a BTC dominance uptrend and outperform a majority of the altcoin market.

I think BTC dominance tops around 60%

- Benjamin Cowen (@intocryptoverse) October 15, 2024

Similarly, crypto investor Coach K Crypto voiced a similar opinion on social media. He told his 129,000 followers that Bitcoin's dominance had already peaked.

According to Coach K, Bitcoin must move significantly before altcoins can rally. He said, Soon enough, there's going to be a breakdown in Bitcoin dominance, leading to altcoins rising."

GM FAM.#Bitcoin dominance (BTC.D) has touched an ATH for this cycle.

IT HASN'T BEEN THIS HIGH SINCE 2021

We need to let #Bitcoin rip before anything else can happen.

Soon enough, there's going to be a breakdown in BTC.D.

This will lead to memes and other major alts getting... pic.twitter.com/V73ZhVRt04

- Coach K Crypto (@Coachkcrypto) October 15, 2024

These predictions indicate that while Bitcoin controls the market, the trend could soon shift. If Bitcoin's dominance decreases, altcoins might have a chance to regain momentum.

Altcoins and Ether Struggle as Bitcoin Dominates

As Bitcoin dominates the market, many altcoins, including Ether, have struggled to make gains. Ether, historically the first altcoin to rise when Bitcoin's dominance declines, has shown weak performance lately.

The Ether to Bitcoin ratio, which compares the price of Bitcoin to Ether, dropped to its lowest point since April 2021. This ratio fell below 0.039 this week, signaling a challenging time for Ether. According to CoinMarketCap, the coin is struggling at around $2,615.

Despite Ether's past strength, it has failed to keep up with Bitcoin's recent rally. Traders and investors who expected Ether to follow Bitcoin's rise were disappointed. This decline in Ether's performance further emphasizes Bitcoin's dominance in the market.

However, some traders believe that Ether and other altcoins will eventually rebound. Analyst Moataz Elsayed predicted on October 14 that Bitcoin's dominance is about to crash hard," leading to a rise in altcoins. This would potentially mark the start of a new altcoin season."

Institutional Interest in Bitcoin Remains Strong

Meanwhile, institutional interest in Bitcoin continues to grow. Institutional investors remain keen on Bitcoin, driving significant inflows into Bitcoin-related financial products.

According to Farside Investors, spot exchange-traded funds (ETFs) for Bitcoin saw net inflows of $371 million on October 15 alone.

Over the past three days, these products have accumulated over $1.1 billion in inflows. This strong demand from institutional investors highlights their confidence in Bitcoin's long-term potential.

With increasing interest from large investors, Bitcoin's price could continue to rise, further solidifying its dominance in the crypto market.

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