Bitcoin Dominance Rises, Altcoin Season Possibly Delayed: ETF Inflows Drive Bitcoin RallyBitcoins dominance in the cryptocurrency market is steadily rising, potentially dimming expectations of an altcoin season ahead of the US presidential election. According to the Bitcoin Dominance Index (BTC
Bitcoin Dominance Rises, Altcoin Season Possibly Delayed: ETF Inflows Drive Bitcoin Rally
Bitcoins dominance in the cryptocurrency market is steadily rising, potentially dimming expectations of an altcoin season ahead of the US presidential election. According to the Bitcoin Dominance Index (BTC.D), Bitcoins market share has climbed to its highest level since 2021, currently sitting at 59.77%.
This growth is strongly correlated with inflows into Bitcoin ETFs, while many altcoins have seen comparatively stagnant performance. As BTC.D rises, Bitcoin's share of the total cryptocurrency market capitalization increases. BeInCrypto's key momentum indicator analysis suggests that bullish sentiment towards Bitcoin is intensifying and could continue to fuel its dominance.
Specifically, the Moving Average Convergence Divergence (MACD) indicator for BTC.D currently shows the MACD (blue) line above the signal line (orange), indicating a strengthening force of Bitcoin in the market. Furthermore, the recent surge in demand for Bitcoin spot exchange-traded funds (ETFs) highlights investors' strong interest in Bitcoin.
Digital asset research firm 10XResearch stated in a report that ongoing demand for BTC ETFs could push Bitcoin's price to $100,000 by January 2025.
In October alone, Bitcoin spot ETFs purchased $4.1 billion, the highest trading volume since March 2024. Moreover, the buying momentum has not slowed, as all ETF buyers remain profitable. Last night, spot ETFs bought another $830 million worth of Bitcoin, bringing the total for the past five days to $2.1 billion. If this trend continues, our quantitative signals predict that Bitcoin could bounce back to $100,000 by the end of January 2025, the research firm stated.
Meanwhile, TOTAL2 (the total market cap of all cryptocurrencies excluding Bitcoin) has been consolidating sideways since early August, reflecting the preference of individual and institutional investors to prioritize Bitcoin over less mature altcoins following the inflow of funds into Bitcoin ETFs. This has led to a reduction in capital flow into the altcoin market, suppressing price momentum and trading volume.
Currently, at least 75% of the top 50 altcoins need to outperform Bitcoin to signal the start of an altcoin season. However, recent data shows that only 29% of top altcoins have outperformed Bitcoin in the past 90 days, falling far short of the 75% threshold. This further delays any potential arrival for an altcoin season.
The continued inflow of funds into Bitcoin ETFs and strong investor interest in Bitcoin are likely to continue driving Bitcoin's dominance in the cryptocurrency market and delay the emergence of an altcoin season. This means altcoin investors may need to exercise patience and wait for a more favorable entry point.
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