Altcoin prices have dropped significantly, with a notable decline in the top twenty cryptocurrencies by more than 15 percent.
The global cryptocurrency market cap stands at \(2.38 trillion, reflecting a 3.93 percent increase in the past 24 hours. Presently, Bitcoin (BTC) commands a market cap of \)1.28 trillion, constituting 53.92 percent of the total cryptocurrency market value. This marks the highest percentage since April 2021, reaching a three-year peak. The surge in Bitcoin dominance is reshaping market dynamics, leading to a decrease in the market share of altcoins.
The recent spike in Bitcoin’s dominance can be linked to the BTC/USD price dropping below $65,300, triggering a cascade of liquidations. Concurrently, altcoin prices have witnessed a significant decline, with many of the top twenty cryptocurrencies experiencing a drop of over 15 percent. This shift in market dynamics has resulted in altcoins ceding market share to Bitcoin, establishing it as the predominant cryptocurrency in the market since April 2021.
In response to the situation, Bagsy, a well-known trader and social media influencer, shared on Saturday, April 13, “I don’t usually monitor Bitcoin dominance closely, but the chart is remarkable given the continuous influx of new altcoins into the market.”
Furthermore, over the weekend, several major altcoins faced a downturn, with Ethereum declining by 1 percent, Solana by 4 percent, Dogecoin by 3 percent, Cardano by 3.41 percent, Avalanche by 3.74 percent, and Shiba Inu by approximately 3.95 percent. Additionally, the price of Bitcoin plunged by nearly 8 percent, dropping from roughly \(70,860 on April 12 to \)65,044 as of April 15.
Meanwhile, as per a tweet from Daan Crypto Trades, “the impact on $BTC was minimal, and the overall downside was not significant. The major repercussions were felt in the #Altcoin sector, resulting in the liquidation of billions of Open Interest and spikes of up to 50 percent.”
Historically, in previous Bitcoin bull markets, its dominance tends to increase initially, with altcoins gaining traction later as BTC/USD stabilizes. In 2024, while altcoins are holding up, they are yet to encounter favorable conditions for substantial growth and stability.
Trader Mikybull Crypto has predicted that the current altcoin market cap trend mirrors that of previous years, hinting at a potential shift in market dynamics. In a tweet, he mentioned, “Altcoins market cap is closely following the pattern of the previous Alt season. This could be the final shake-off before a significant surge in conjunction with the downward trend in Bitcoin dominance.”
Shankar is the originator of yMedia. He delved into crypto in 2013 and staunchly supports ETH.
Twitter: @bhardwajshash
Subscribe Now