Bitcoin’s market dominance has risen to 60.5%, signaling a shift away from altcoins and impacting their current performance.
Analysts, including trader Benjamin Cowen, foresee a ‘grand finale’ for altcoins, with a significant downturn expected by late 2024 to early 2025.
With the Altcoin Season Index showing a tilt toward Bitcoin, altcoins may not enter a recovery phase until 2025, mirroring past market cycles where Bitcoin’s dominance ultimately gave way to altcoin growth.
If there’s one thing the crypto market loves, it’s a good altcoin season.
Signs of a pending altcoin boom have been on the horizon for weeks.
However, with time running out in 2024, one analyst says the ‘grand finale’ for the altcoin market will push any recovery phase into 2025.
Here’s what it all means.
Bitcoin Flexes, Establishes Dominance
The cryptocurrency market shifts constantly, and another one is underway right now.
Bitcoin’s dominance over altcoins reached 60.5%, the highest since March 2021.
$BTC’s surge corresponds with a notable underperformance in altcoins, prompting analysts to predict a continued downturn in the near future.
Altcoin Decline Builds to ‘Grand Finale’
Crypto trader Benjamin Cowen forecasts an imminent ‘grand finale’ for the altcoin market, drawing parallels to the 2019 bear market.
He anticipates a significant decline in altcoin valuations, similar to the downturn experienced in 2019, with this phase concluding by December 2024 or early January 2025.
Cowen suggests that, following this decline, a recovery phase may commence in 2025, mirroring the pattern observed in previous market cycles.
In 2019, altcoins experienced a substantial decline before recovering in 2020 and reaching new highs in 2021.
Currently, major altcoins such as Ethereum ($ETH) and Solana ($SOL) have dropped 11% since late October, while BNB ($BNB) has lost 8%.
$BTC, in contrast, has declined by only 5.8% in the same period. That has allowed $BTC to maintain and even expand its market dominance.
Altcoin Season Starts When Bitcoin Dominance Ends
Until investors start shifting away from $BTC and into altcoins – particularly large-cap altcoins like $ETH and $SOL – there will be no true altcoin season.
Currently, market sentiment for leaders like $ETH remains generally bearish, and inflows to $SOL – which is dominating a new meme coin cycle – often come from other altcoins, not $BTC.
With $BTC dominating the headlines after a strong October performance and with the potential for a big move after Tuesday’s election, Bitcoin’s dominance seems unlikely to end right away.
The rising Bitcoin dominance and underperformance of altcoins support the prediction that Bitcoin could gain an even greater market share.
Will 2025 Finally See Altcoin Season Return?
Bitcoin’s dominance is rising, with the Altcoin Season Index firmly leaning towards the leading cryptocurrency.
The Altcoin Season Index, which measures the performance of altcoins relative to Bitcoin, currently stands at 24. A reading below 25 indicates a Bitcoin season, while a reading above 75 signifies an altcoin season.
With the index solidly in $BTC territory, any altcoin season will need to wait until 2025.
References
‘Grand finale of altcoin reckoning’ soon, warns crypto trader (Cointelegraph)
Is altcoin season on hold until 2025? Rising BTC dominance suggests…(AMBCrypto)
Ethereum (Coinmarketcap)
Solana Dominates Fee Generation and DEX Volume While Ethereum Suffers Outflows (Solana Floor)
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Aaron covers crypto topics with an emphasis on providing accessible, informative perspectives. His background includes over a decade in higher education and 5+ years as a freelance writer in crypto & SEO.
When he’s not writing professionally, Aaron enjoys writing for fun, volunteering for a local charity, and boxing.
View all articles by Aaron Walker
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