Bitcoin (BTC) is facing fresh competition from altcoins this month, as data shows that it is technically already “altcoin season.”
Figures from CoinMarketCap and TradingView show that BTC currently accounts for around 41% of the overall cryptocurrency market capitalization, its lowest level since the start of 2022.
Bitcoin Comes Off Market Cap Prowess
After suffering at the hands of the collapse of Terra LUNA—now rebranded as Terra Classic (LUNC)—altcoin markets have rallied considerably in recent months.
Along with Bitcoin’s comeback from 18-month lows from $17,600 in June, altcoins have enjoyed their own renaissance, one that is now giving Bitcoin bulls a run for their money.
According to CoinMarketCap, Bitcoin’s market cap share is now at its lowest point since mid-January, and the largest altcoin, Ether (ETH), in particular, has stolen the limelight in recent weeks.
From the lows of 14.3% on June 19, Ethereum’s market dominance now stands at 19%.
The case for betting on altcoins is bolstered by a metric dedicated to calling the “altseason,” a period in which altcoins outshine Bitcoin as an investment.
With a normalized score of 94/100, the Altcoin Season Index currently shows its most compelling altcoin season reading since June 2021.
The closer the score is to zero, the more the metric favors Bitcoin over altcoins. The altcoin season is named after “75% of the top 50 coins outperformed Bitcoin over the last season,” its description explains, adding that a “season” equals the last 90 days.
Bitfinex ETH long bets plunge to May lows
Controversy over the upcoming Merge event, meanwhile, meant that ETH performed similarly unconvincingly on short time frames this week.
In the 24 hours to the time of writing on August 9, the ETH/USD pair is down nearly 7%, while the BTC/USD pair is down $1,000 in intraday hours.
Nerves over the reading of the US Consumer Price Index (CPI) on August 10 contributed to the fall, according to argued analysts, including Cointelegraph contributor Michaël van de Poppe.
Whale closed 300,000 Long positions on Bitfinex
— Maartunn (@JA_Maartun) August 8, 2022
Whale closed 300,000 long positions on Bitfinex
Let’s find out WHY this matters and WHAT it could mean for the market
On-chain observers, meanwhile, noted that one of the major exchange players Bitfinex had sharply reduced its exposure to ETH, indicating a belief that a drop was all but guaranteed.
At the time of writing this article, long positions were at the same low levels as before the Terra incident in May.
Nonetheless, Van de Poppe called for ETH price action to be capped.
“People already have $300 or $600 targets for Ethereum on the first little correction,” he tweeted.
“You don’t have to, literally, even though people are very stuck in their bias. Because of that bias, they won’t be able to look at the markets objectively.”
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