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The dominance of Bitcoin in the crypto market is strengthening, while altcoins are experiencing a worrying free fall. A situation that reminds investors of the volatility and fluctuating dynamics of the crypto market.
The supremacy of Bitcoin in the crypto market
In July, the Altcoin Season Index (ASI), which measures the relative performance of altcoins compared to Bitcoin, briefly flirted with the promising threshold of 46. Investors were already anticipating an altcoin season with this rise. However, this index has since significantly dropped to 24.
This decline of more than 47% from its peak indicates that the market is once again favoring Bitcoin. The altcoin season is still far from being reached. Despite fleeting relief periods observed earlier this year, BTC recorded an impressive increase of 20.4% over the past two weeks.
On the other hand, Ether only increased by 16.2% during the same period. The scheduled listing of Ether spot ETFs on July 23 could have marked a turning point for ETH and other cryptos. However, the impact on the market was modest. Bitcoin continues to outperform them.
Altcoins struggle to find their momentum
The last significant altcoin season occurred during the 2021 bull run. Since then, these cryptos have struggled to maintain consistent gains against Bitcoin. The collapse of major entities like FTX and Terra/LUNA in 2022 has reinforced BTC’s dominance.
Additionally, the valuation of smart contract cryptos has decreased by 0.1% in the past 24 hours. It is currently valued at $724.05 billion. This decline illustrates the challenges altcoins face in gaining ground.
The persistence of Bitcoin’s dominance suggests that investors may have to wait longer for an altcoin-driven resurgence. Recent innovations in the crypto market, including Ether ETFs, have not yet translated into a significant momentum for altcoins. As long as the ASI score remains below 75, Bitcoin continues to be the preferred choice of investors.
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Graduated from Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of the news, decipher market trends, relay the latest technological innovations, and put the economic and societal issues of this ongoing revolution into perspective.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
