- In the last seven days, Bitcoin prices are down by over 21%.
- Bitcoin dominance stood at 50.1% on Thursday, its lowest in the last three years.
- Compared to Bitcoin dominance on 1st January 2021, the current Bitcoin dominance is down by over 8 percentage points.
With Bitcoin’s current prices below the $50,000 mark, its dominance in the crypto world is going down. As per on-chain data of Bitcoin, available on CoinMarketCap, Bitcoin held a 50.1% share in the entire cryptocurrency market cap on Thursday.
Is Bitcoin Losing Ground to Altcoins?
Last week has proved to be a lackluster show for Bitcoin traders, with a fall of over 21% in Bitcoin prices. Bitcoin is now down below $50K from the highs of over $60K in the past seven days. With this fall, Bitcoin lost a few percentage points in its dominance in the cryptocurrency market.
Comparing Bitcoin’s dominance at the beginning of 2021 with its current standing will help us decipher the scenario better. At the time of writing, Bitcoin dominance stands at 51.75%, which indicates that Bitcoin has gained 1.5% dominance in 2 days.
On 1st January 2021, Bitcoin Dominance was just below 60%, and so far this year, Bitcoin dominance is down by more than 8 percentage points. There is no doubt that Bitcoin had fantastic growth in 2021. Yet, Bitcoin lost considerable ground this year when it comes to its dominance in the cryptocurrency market.
Is this the Beginning of Alt Season?
Experts indicate that every time Bitcoin dominance goes below the 50% mark, the altcoins pick momentum. Altcoin season is often led by Ethereum, the second-largest cryptocurrency by market cap.
The crypto market has seen something similar in mid-2017 and early 2018, where altcoin season began just after Bitcoin dominance was down below 50%. It led to immediate gains in the altcoin prices followed by a short lull for altcoins, with Bitcoin gaining some of its dominance back.
Altcoin investors are up for a treat if history, indeed, repeats itself. They have been eagerly awaiting an alt season. So far in 2021, altcoins have put up an impressive performance without an alt season. Thus, the alt season this time may surprise many altcoin holders.
