Perhaps, there is indeed a strong reason why Bitcoin is hailed as the world’s leading and most famous cryptocurrency. Despite exhibiting a downward trend in price as of late, BTC proved once again that nothing in the industry could sweep its dominance. As of press time, Bitcoin is on an upward journey, and it’s nearing 70% in terms of key market dominance, a move that was last seen a few years go. The historic kick ultimately led the industry’s experts to think that altcoins are being prepped up to follow the trend.
Bitcoin as a trendsetter
While Bitcoin continues to gain worldwide fame despite its inevitable volatility, traders seemed to discover a new kind of crypto assets. In 2017, the so-called “altseason” was witnessed in the industry when one by one, little to unknown altcoins began to explode. As per the data provided by CoinMarketCap, random crypto assets, regardless of market cap and popularity, posted 50%+ days, some even reached 100%+.
Around the same time, when altcoins had seemingly found their momentum, Ethereum exhibited a mind-boggling rally. From $10, the value surged to $1400, ultimately causing investors to flock the market. According to analysts, the golden era of these altcoins began when Bitcoin was dominating around 70% of the market.
Bitcoin Birch, a partner at cryptocurrency startup Lunar, took to Twitter his analysis of the matter. He noted that the last time Bitcoin approached this historical key metric, the altseason broke into a run when Bitcoin’s price suddenly plummeted relative to the crypto assets at bay. In March, BTC’s dominance was on the verge, and the downward trend went on until early 2018. While there is no solid guarantee that history would repeat itself, most investors believe that an altcoin resurgence is on its way.
Willy Woo, a partner at Adaptive Capital and an industry analyst as well, mentioned that altcoins might soon gain support from the industry against BTC. On his Twitter account, Woo shared an image that shows the capitalization and market volume ratios of altcoins to Bitcoin. The figures indicate that altcoins are approaching a line of support. According to Woo, if history would repeat itself, then crypto traders must prepare for the return of the “altseason”.