Bitcoin Dominance Downtrend: A Signal for Altcoin Season?
Recent fluctuations in Bitcoin’s market dominance have sparked discussions among crypto analysts about the potential arrival of altcoin season. According to Matthew Hyland, a crypto analyst, the bearish trend in Bitcoin dominance could be a sign that altcoin season is approaching sooner than expected. Hyland stated, “The reason you should have confidence in altcoin price action is because the BTC dominance chart looks bearish and has for many weeks.”
Hyland’s analysis suggests that the recent recovery rally in Bitcoin’s dominance was a “dead bounce in a downtrend,” indicating a continued downward trend. In a separate video, Hyland speculated that the recent volatility in Bitcoin’s price may have been orchestrated by traditional financial giants to manipulate Wall Street. “For the last month, I’ve simply expressed the view that a lot of this was actually just manipulations that were essentially designed to manipulate Wall Street,” he claimed.
Bitcoin Dominance on the Decline
According to TradingView, Bitcoin dominance has declined by 5.13% over the past 6 months, currently standing at 59.90%. This decline is evident in the chart, which shows a steady decrease in Bitcoin’s market share. 
The decline in Bitcoin dominance has been accompanied by a decrease in Bitcoin’s price, which fell below the $100,000 mark for the first time in four months on November 4. According to CoinMarketCap, Bitcoin is currently trading at $102,090. 
Altcoin Season Index
CoinMarketCap’s Altcoin Season Index is currently at 28 out of 100, indicating that the market is still in “Bitcoin Season” territory. However, some analysts believe that the next altcoin season may differ from previous cycles. Maen Ftouni, CEO of CoinQuant, expects the next altcoin season to be more selective and concentrated, with older cryptocurrencies that have or are expected to receive an exchange-traded fund (ETF) absorbing much of the capital deployed.
Ftouni stated, “Not every single coin will produce huge returns; liquidity will be concentrated in certain places, including dinosaurs of course.” This suggests that investors should be cautious and selective in their investment choices during the next altcoin season. For more information on the crypto market and altcoin season, visit Cointelegraph.
