The ongoing rise in Bitcoin Dominance (BTC.D) has sparked discussions about the potential for an altcoin season. Some experts believe that if BTC.D corrects, there may be an opportunity for altcoins to gain momentum; however, a market analyst has expressed skepticism.
He suggests that the current market cycle may deviate from past trends as holders of Bitcoin are unlikely to switch to altcoins by selling their Bitcoin holdings. The question remains: Is Bitcoin's resurgence hindering the growth potential of altcoins?
Reports from BeInCrypto last week indicated that Bitcoin Dominance had climbed to its highest level in more than four years, reaching 64.5%, up by 11% since the beginning of the year.
Various analysts predict a possible dip in BTC.D. Mister Crypto highlighted a potential rejection point for BTC.D at a key trendline, historically a tough barrier to break. This resistance level could trigger a surge in altcoins, as he anticipates.
Another analyst, Merlijn The Trader, expressed optimism about an upcoming shift, suggesting a possible altcoin season.
Despite projections of an altcoin season, not all experts are in agreement on the timing of such an event.
Scott Melker, from The Wolf Of All Streets Podcast, believes this market cycle is distinct. Unlike previous cycles, where investors shifted between Bitcoin and altcoins, the current influx of new money into Bitcoin from various sources, including retail, institutions, and governments, is not flowing into altcoins. Melker emphasized that the decline in altcoins against Bitcoin is due to holders selling off altcoins out of necessity rather than investing in Bitcoin.
This shift in market behavior aligns with the growing perception of Bitcoin as a safe store of value in the face of inflation uncertainties.
Recent events, such as the US Dollar Index falling to a three-year low, have propelled both Bitcoin and gold. Bitcoin soared past $87,000, hitting highs not seen in a while. Meanwhile, gold reached an all-time high of $3,456.
With Bitcoin and gold both gaining traction as safe haven assets amidst economic worries, they are seen as reliable investments.