Bitcoin dominance falls 5% as new ‘Altseason’ takes shape

The value of altcoins has skyrocketed in recent weeks, with Bitcoin’s dominance falling by 5%. Over the past 90 days, almost all major altcoins have seen notable double- and even triple-digit percentage increases, hinting at a possible “altseason.”

BTC dominance down 5%

Altcoin season is a period in the market cycle, where other cryptocurrencies outperform BTC even if the price of Bitcoin rises.

During this period, the dominance of BTC, which measures Bitcoin’s relative share of the entire cryptocurrency market, has traditionally been lower. At the same time, altcoins are gaining strength and momentum.

As of this writing, BTC dominance stands at around 55%. That represents a drop of about 5 percent over the past two weeks.

Bitcoin dominance still remains above 50%

It is also worth noting that this comes during a period in which the price of Bitcoin has actually increased. Since May 14, BTC has increased by almost 10%. Yet despite this increase, its overall share of the total market has declined.

At the same time, as Bitcoinist previously reported, the Market Dominance Index does not always give an accurate picture of the market. Other cluesfor example, places BTC well above 80 percent.

Is “AltSeason” just around the corner?

Nonetheless, the fact that BTC’s market cap is falling is a sign that altcoins are starting to catch up. Additionally, over the past 90 days, it also appears that the value of many major altcoins against the US dollar has also increased significantly.

This is why traders are now wondering if the so-called new season is upon us.

As the chart above shows, some of the top gainers over the past three months include Bitcoin Cash (BCH), Binance Coin (BNB), EOS, Litecoin (LTC), DASH and others.

The relatively short-term strength of altcoins, along with BTC’s diminishing dominance, could signal that an altcoin season is indeed taking shape.

However, looking at the bigger picture reveals a completely different story. Over the past 12 months, most altcoins have seen substantial losses ranging between 35% and 70%. Bitcoin, on the other hand, has seen impressive gains since its yearly low of around $3,200 earlier this year.

Additionally, altcoins tend to follow the performance of BTC and if Bitcoin sneezes, every altcoin catches a cold.

Bitcoin remains the safest game

Although altcoins can be a good opportunity for quick gains, the truth is that market timing remains particularly difficult.

This is perhaps best exemplified by Twitter user Marc de Koning (@Koning_Marc), who recently shared his experience of investing 1 BTC in 50 different altcoins each in mid/late 2017.

“Out of 50 coins each containing 1 BTC, the overall current value is between 0.02 and 0.3 BTC per bag. Many pieces have been written off, except for the dexes which no one uses.

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The user did not indicate which altcoins he had invested in per se, but the fact that out of 50 coins he had losses in the range of 70 to 99 percent speaks for itself.

Bitcoin, on the other hand, remains the most successful cryptocurrency. As a Bitcoinist recently reportedthis is a 700 percent increase since January 1, 2017. Additionally, BTC is outperform the stock market this year by a staggering 1000 percent.

What do you think about altcoins? Have you got some ? Please let us know in the comments below!

Images via Shutterstock, Messari.io

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