As the dominance of Bitcoin regains momentum and Ethereum’s price tanks, the chances of having an alt season is at an all-time low.
According to data from Coin Market Cap on 23 June, Bitcoin dominance, which is the percentage of the market accounted for by the number one digital asset, is close to 65%.
Technically, this means that Bitcoin has regained its control over the market and altcoins are losing, hence a slimmer chance of an altcoin season.
Why it matters
Many crypto investors have prayed for Bitcoin to grow, but not all of them are actually invested in or even attracted to Bitcoin. They only know that after the Bitcoin rally comes altcoin season, which is what they are waiting for.
Unfortunately, two of the major indications of a coming altcoin season are the growth of Ethereum and the reducing dominance of Bitcoin.
Both of these metrics are currently working contrary to the expectation for ensuring an alt season. Ethereum is currently one of the worst performing top cryptocurrencies, having lost 14.21% in the last week.
As the asset that usually leads the growth of altcoins during altcoin seasons, such a performance has eroded many investors’ hope of seeing an altcoin season any time soon, or ever.
If Bitcoin dominance continues to rise, altcoins will likely do worse in the short term, but there may be relief at the end.
An important indicator gives hope
While the future looks bleak for altcoins looking at Bitcoin and Ethereum, all hope is not lost, as a critical indicator, the altcoin season indicator offers hope.
The indicator does show that altcoin season is not upon us, but it indicates that this may be the farthest the market can be from the next alt season.
Historically, the indicator has been at its lowest around this time, which means the next thing to look forward to from here is an upward movement.
What do you think?
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