Bitcoin’s market share has fallen slightly, with cryptocurrency analysts speculating it may have peaked as traders shift their focus to altcoins.
“Bitcoin’s dominance may have peaked,” Michaël van de Poppe, founder of trading firm MNTrading, argued in a May 1 report. post “There is a high possibility that an altcoin bottom will come,” he explained.
“Altcoins are starting to break out of Bitcoin pairs, which means the cycle has started,” he added.
A decline in Bitcoin (BTC) dominance could signal to market participants that a potential altcoin market rally is imminent as investors shift capital from Bitcoin to altcoins, which are viewed as more stable stores of value in the cryptocurrency market. can. More volatility.
“Bitcoin dominance is now losing significant ground.” Added Crypto trader Matthew Hyland said he would wait for the weekly close before confirming or rejecting the “gut.”
Bitcoin’s dominance, which measures Bitcoin’s share of the overall cryptocurrency market capitalization, stands at 53.90%, down 1.75% over the past seven days but still up 4.63% since the start of 2024, according to TradingView data.
“Bitcoin dominance is declining. If prices continue to fall for several months, alternative investors may take advantage. Many alts are holding up surprisingly well today.” Trading Team IncomeSharks wrote From X’s May 1 post.
Solana (SOL), Pepe (PEPE), and Dogwifhat (WIF) are up slightly, up 2.76%, 3.04%, and 3.25%, respectively, over the past 24 hours, according to CoinMarketCap data.
The decline in market share comes as the price of Bitcoin fell 10.44% over the same seven-day period.
However, current market sentiment casts doubt on speculation that Bitcoin’s dominance has peaked.
Increasing fear levels indicate uncertainty in the market and could lead traders to reallocate their funds back to Bitcoin rather than riskier cryptocurrency assets.
Related: Bitcoin price lost $60,000 support and hit a two-month low.
According to the Crypto Fear and Greed Index, May 1st reflects the highest level of fear among cryptocurrency market investors since the beginning of the year.
On May 1, the index score representing market sentiment fell from the previous day’s ‘neutral’ score of 54 to a ‘fearful’ level of 43.
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This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.