In the last 90 days, 21 cryptocurrencies outperformed BTC, including DOGE and ADA. Bitcoin dominance fell to levels of 59% today. As the price of Bitcoin (BTC) approaches $100,000, the dominance of this crypto asset over altcoins has fallen for the third consecutive day. Currently, according to data provided by the financial analysis platform TradingView, this measurement fell to levels of 59%.
Bitcoin dominance is calculated by dividing the Bitcoin market capitalization by the total cryptocurrency market capitalization. When Bitcoin dominance is high, it indicates that much of the money in the market is concentrated in this cryptocurrency. Conversely, a drop in dominance suggests that investors are diversifying into altcoins, such as Dogecoin (DOGE), Cardano (ADA), Solana (SOL), among others.
Bitcoin's dominance over alternative cryptocurrencies falls for the third day in a row. Source: TradingView.
Is the cryptocurrency altseason coming?
Although three red candles they don't seem to be enoughIf BTC dominance continues to decline, investors could begin to speculate on an Altcoin Season (altseason). The term “altseason” refers to a period in which altcoins experience a significant increase in their value and trading volume, surpassing the profitability of Bitcoin within 3 months.
In this sense, according to data from the Blockchain Center, in the last 90 days only 21 cryptocurrencies surpassed in market performance to bitcoin. The five that left the best profitability are: Stellar (XLM), DOGE, Mantra (OM), Sui (SUI) and ADA.
Bitcoin has been outperformed by 21 cryptocurrencies in the last 90 days. Source: Block Chain Center. To determine that an altseason could indeed begin, this site indicates that if 75% of the top 50 cryptocurrencies performed better than Bitcoin in the last season (90 days), it is considered to be an Altcoin Season (excluded from this statistic stablecoins and tokens such as WBTC or stETH). In addition to this, the Altcoin Season Index measures whether the market is in an Altcoin Season. If the index is greater than 75, it indicates an alteason, while values below 25 reflect a Bitcoin Season, where Bitcoin dominates in performance. This index currently has a value of 43, suggesting that bitcoin remains strong against most altcoins, although some have shown better performance.
The index that measures the Altcoin Season has not yet determined that it began. Source: Block Chain Center. In this way, the next few days or weeks could be important to determine if this trend consolidates or if, on the contrary, Bitcoin continues the dominant path against altcoins.