Bitcoin Dominance Less Likely to Fall
Introduction
Despite the recent price turmoil in the cryptocurrency market, Ki Young Ju, the founder and CEO of CryptoQuant, believes that Bitcoin’s dominance is unlikely to decline in the near future. According to Ju, historical data shows that alternative cryptocurrencies (altcoins) have always rallied when Bitcoin retracts and its market dominance declines during bull cycles.
Bitcoin’s Growth Rate
Ju’s findings indicate that the altseason, where capital leaves Bitcoin and flows into altcoins, may not be as close as market experts have predicted. According to Ju, Bitcoin’s growth rate in this cycle makes it less likely for its dominance to plunge. The asset’s growth this year has been fueled by several factors, including the launch of spot exchange-traded funds (ETFs) in the United States and President Donald Trump’s support for the cryptocurrency during his election campaign.
Data Analysis
Data from CoinmarketCap shows that Bitcoin’s market dominance, which was 57% at the time of writing, has experienced a slight plunge in the past week and month. However, Ju noted that during Bitcoin’s 37% market cap growth over the past few months, large-cap altcoins rose 16%, while cryptocurrencies with small and mid-sized market caps gained 10%. The only time small and mid-sized coins outperformed BTC was during the memecoin season in April; since then, BTC has remained the lead.
Capital Flow
Ju insists that the nature of capital flowing into the Bitcoin network could maintain the asset’s dominance and delay altseason for some time. This BTC bull run is primarily driven by demand from spot ETFs and institutional investors, indicating a shift in capital inflows.
The Fate of Altcoins
Except for Ethereum, which accounts for 12.8% of the crypto market, other cryptocurrencies, including stablecoins and memecoins, represent 30.2% of the sector. The bull cycle of 2021 saw Bitcoin’s dominance plunge to 40%, and altcoins represented 41% of the crypto market during the altseason. This means there is still room for growth among altcoins before they can have their rally.
Conclusion
In conclusion, Ki Young Ju’s analysis suggests that Bitcoin’s dominance is unlikely to decline in the near future. The asset’s growth rate, driven by demand from spot ETFs and institutional investors, makes it less likely for its dominance to plunge. While altcoins may still have room for growth, they will need to develop independent strategies to attract new capital and trigger the next altseason.
FAQs
Q: What is the current market dominance of Bitcoin?
A: According to CoinmarketCap, Bitcoin’s market dominance is currently 57%.
Q: Why is Bitcoin’s dominance unlikely to decline?
A: Ki Young Ju’s analysis suggests that Bitcoin’s growth rate, driven by demand from spot ETFs and institutional investors, makes it less likely for its dominance to plunge.
Q: What is the current market capitalization of altcoins?
A: Except for Ethereum, which accounts for 12.8% of the crypto market, other cryptocurrencies, including stablecoins and memecoins, represent 30.2% of the sector.
Q: What is the next altseason likely to be triggered by?
A: Altcoins will need to develop independent strategies to attract new capital and trigger the next altseason.
