Bitcoin's dominance (BTC.D) in the cryptocurrency market has climbed to its highest level since 2021. This rise mirrors a multi-month high in Bitcoin's price, signaling a growing inclination towards Bitcoin and Bitcoin-related investment products.
Despite this, analysts are worried that the surge in dominance suggests Bitcoin has hit a local peak, indicating a potential short-term price drop. Typically, BTC.D peaks align with market tops, raising concerns about the broader market cycle.
Certain analysts, including Elja Boom and Coach K Crypto, predict a decline in Bitcoin dominance, ushering in altcoin season. However, this occurrence is contingent upon Ethereum's performance, with its dominance needing to exceed a certain level.
Currently, only 20 of the top 50 altcoins have outperformed Bitcoin in the past three months, a condition required for altcoin season. The ETH/BTC ratio is nearing its lowest point in over three years, reflecting a Bitcoin preference over Ethereum.
