Bitcoin Dominance Soars: Here’s Why That’s Good for Alts

• Market sentiment soars as BTC trades close to its ATH price.
• Bitcoin dominance hits multi-year highs.
• Altcoins represent higher risk, higher reward plays. 

Uptober has come through for Bitcoin investors as BTC hit a $73,600 local top on Tuesday, just 0.4% shy of its March all-time high. Meanwhile, Bitcoin’s dominance of the crypto market surged to 60.2%, putting the squeeze on altcoins.

Still, altcoin investors have reason to stay optimistic, with expectations for an epic altseason building under these conditions.

The Silver Lining to Runaway Bitcoin Dominance

Bitcoin surged close to its all-time high on Tuesday, while its dominance of the crypto market hit a 187-week high, putting altcoins under pressure. 

A rise in Bitcoin dominance generally reflects a cautious market stance, where Bitcoin stays bullish or stable, leaving altcoins underperforming in comparison.

However, analyst Miles Deutscher offered a fresh perspective on this dynamic, suggesting that a strong Bitcoin is actually beneficial for the altcoin market. According to Deutscher, the more capital that flows into Bitcoin, the bigger altseason will be once dominance reverses.

Deutscher added that the current setup, with altcoins showing flat to moderate gains ahead of the US election, is a positive indicator, suggesting that the market top has not yet come in.

Market Exuberance 

With Bitcoin soaring, and altcoins trading largely flat, the Fear and Greed Index hit extreme greed territory with a reading of 77 on Wednesday, marking a 20-week high.

The index gauges market sentiment using factors such as volatility, market momentum, social media buzz, and dominance. Readings range from 0 to 100, and the index is divided into four zones: extreme fear, fear, greed, and extreme greed.

While a reading of 77 signals strong positive market sentiment, extreme greed can also be taken as a potential indicator that a market correction is due.   

On the Flipside

• Bitcoin dominance has been trending higher since late 2023.
• There is no universally accepted definition for altseason.
• Memecoins have demonstrated overperformance in recent weeks.

Why This Matters

Altcoin investors have demonstrated patience during Bitcoin’s extended run of dominance.

Bitcoin maxis shun new Cardano bridge.
Cardano Grail Bridge Branded Scam by Bitcoin Maxis

Binance’s new service targets high-net-worth individuals.
Binance Brings TradFi Touch to Elite Crypto Services