While Bitcoin continues to take a beating in terms of dollars, the top cryptocurrency also continues to lose its share over the market cap. In fact, with the most recent support level breached, BTC dominance could be targeting historic lows.
Historic lows in BTC dominance could mean that an altcoin season unlike ever before is potentially ahead. Here’s a closer look at the metric that weighs Bitcoin against the rest of the crypto space and how it could impact altcoin performance.
Bitcoin Continues To Lose Cryptocurrency Market Dominance
At one point, there was only Bitcoin. As the industry grew, a metric was born called BTC dominance that made it more clear how much weight the top coin had compared to the rest of the market.
Prior to 2017, Bitcoin accounted for as much as 95% of the entire cryptocurrency market, but fell to a low of 35% less than a year later during what is considered to be the greatest altcoin season on record.
Related Reading | 2022: The Year The Secular Bitcoin Bull Run Could End
After reaching such extremes in 2018, by 2020, Bitcoin had recovered more than two-thirds of the market cap. Dominance topped out near 70% where it sharply reversed all throughout 2021.
At the close of the 2021 yearly candle, a several year trading range was officially breached. The well defined range is even more visible in the six-month BTC.D chart. And it could create the conditions necessary for an unprecedented altcoin season.
The yearly (left) and six-month (right) BTC.D chart | Source: CRYPTOCAP-BTC.D on TradingView.com
Unprecedented Altcoin Season Could End At…