Supply & Demand for BTC.d <---> ETHBTC
A notable change may be occurring in the market dynamics surrounding Bitcoin dominance, which reflects BTC’s share of the overall cryptocurrency market. Recently, it has displayed a shooting star candle, indicating a potential decline in BTC’s market influence. These signs point towards the beginning of an alt season, a time when alternative cryptocurrencies tend to outperform Bitcoin. With BTC stabilising around the significant 100k mark, the environment appears ripe for altcoins to attract investor interest. The upcoming weeks will be crucial in assessing whether this trend will gain traction, possibly transforming the market landscape for 2025.
Bitcoin experienced an impressive 2024, achieving new milestones and reinforcing its status as the market frontrunner. As we move into 2025, BTC remains robust, yet a shift in market dynamics may be imminent. Historically, Bitcoin’s dominance tends to wane when altcoins start to gain momentum, and this year might follow that pattern.
As Bitcoin finds stability around crucial price points, we often see liquidity shifting towards altcoins, sparking what many refer to as an alt season. Historically, during these times, altcoins tend to surpass Bitcoin in performance, offering significant returns for those investors ready to explore beyond BTC. With TOTAL3 approaching new price discovery and Bitcoin's dominance on the decline, the potential for altcoins to take center stage is becoming more apparent.
The crucial factor for BTC.d to unlock is how ETH performs against BTC. With the ETH/BTC ratio below 0.03, it appears appealing, but until it begins to rise, the alt season will be postponed. Alt season typically arises when Bitcoin dominance is high, not when it's low.
Typically, Bitcoin dominance tends to decrease in the years following a halving event. Therefore, I suspect that by the end of the year, dominance will be in the negative. However, up to this point, we have seen an increase in dominance this year.
Bitcoin experienced an impressive 2024, achieving new milestones and reinforcing its status as the market frontrunner. As we move into 2025, BTC remains robust, yet a shift in market dynamics may be imminent. Historically, Bitcoin’s dominance tends to wane when altcoins start to gain momentum, and this year might follow that pattern.
As Bitcoin finds stability around crucial price points, we often see liquidity shifting towards altcoins, sparking what many refer to as an alt season. Historically, during these times, altcoins tend to surpass Bitcoin in performance, offering significant returns for those investors ready to explore beyond BTC. With TOTAL3 approaching new price discovery and Bitcoin's dominance on the decline, the potential for altcoins to take center stage is becoming more apparent.
The crucial factor for BTC.d to unlock is how ETH performs against BTC. With the ETH/BTC ratio below 0.03, it appears appealing, but until it begins to rise, the alt season will be postponed. Alt season typically arises when Bitcoin dominance is high, not when it's low.
Typically, Bitcoin dominance tends to decrease in the years following a halving event. Therefore, I suspect that by the end of the year, dominance will be in the negative. However, up to this point, we have seen an increase in dominance this year.
Note
Nice divergence on #BTC.d
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.