{"id":397245,"date":"2022-08-09T22:47:15","date_gmt":"2022-08-09T17:17:15","guid":{"rendered":"https:\/\/www.www.bullfrag.com\/bitcoin-dominance-hits-6-month-lows-as-metric-heralds-a-new-altcoin-season\/"},"modified":"2022-08-09T22:47:15","modified_gmt":"2022-08-09T17:17:15","slug":"bitcoin-dominance-hits-6-month-lows-as-metric-heralds-a-new-altcoin-season","status":"publish","type":"post","link":"https:\/\/www.bullfrag.com\/bitcoin-dominance-hits-6-month-lows-as-metric-heralds-a-new-altcoin-season\/","title":{"rendered":"Bitcoin dominance hits 6-month lows as metric heralds a new \u201caltcoin season\u201d"},"content":{"rendered":"
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Bitcoin (BTC) is facing fresh competition from altcoins this month, as data shows that it is technically already \u201caltcoin season.\u201d<\/p>\n

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.<\/p>\n

Bitcoin Comes Off Market Cap Prowess<\/h2>\n

After suffering at the hands of the collapse of Terra LUNA\u2014now rebranded as Terra Classic (LUNC)\u2014altcoin markets have rallied considerably in recent months. <\/p>\n

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. <\/strong><\/p>\n

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.<\/strong><\/p>\n

From the lows of 14.3% on June 19, Ethereum’s market dominance now stands at 19%.<\/p>\n

Bitcoin market cap dominance 1-week candlestick chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

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.<\/p>\n

With a normalized score of 94\/100, the Altcoin Season Index currently shows its most compelling altcoin season reading since June 2021.<\/p>\n

The closer the score is to zero, the more the metric favors Bitcoin over altcoins. The altcoin season is named after \u201c75% of the top 50 coins outperformed Bitcoin over the last season,\u201d its description explains, adding that a \u201cseason\u201d equals the last 90 days.<\/strong><\/p>\n

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Altcoin Season Index (screenshot). Source: Blockchain center.<\/em><\/figcaption><\/figure>\n

Bitfinex ETH long bets plunge to May lows<\/h2>\n

Controversy over the upcoming Merge event, meanwhile, meant that ETH performed similarly unconvincingly on short time frames this week.<\/p>\n

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.<\/strong><\/p>\n

Nerves over the reading of the US Consumer Price Index (CPI) on August 10 contributed to the fall, according to argued<\/a> analysts, including Cointelegraph contributor Micha\u00ebl van de Poppe.<\/p>\n

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Whale closed 300,000 Long positions on Bitfinex<\/p>\n

Let’s find out WHY this is important and WHAT it could mean for the market #bitcoin<\/a> #Ethereum<\/a> #crypto<\/a> #Bitfinex<\/a> #Futures<\/a> pic.twitter.com\/oiAotLM1Ll<\/a><\/p>\n

\u2014 Maartunn (@JA_Maartun) August 8, 2022<\/a>\n<\/p><\/blockquote>\n

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Whale closed 300,000 long positions on Bitfinex<\/p>\n

Let’s find out WHY this matters and WHAT it could mean for the market<\/p>\n<\/blockquote>\n

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.<\/p>\n

At the time of writing this article, long positions were at the same low levels as before the Terra incident in May.<\/strong><\/p>\n

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ETH\/USD (Bitfinex) 1-day long candlestick chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

Nonetheless, Van de Poppe called for ETH price action to be capped.<\/p>\n

\u201cPeople already have $300 or $600 targets for Ethereum on the first little correction,\u201d he tweeted.<\/p>\n

“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.”<\/p><\/blockquote>\n

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ETH\/USD (Binance) 1-hour candlestick chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Each investment and commercial movement involves risk, you must do your own research when making a decision.<\/em><\/p>\n<\/div>\n

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Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.<\/p>\n<\/div>\n