Bitcoin market share falls below 60%, is a season of altcoins beginning to show signs?
According to the latest data from TradingView, Bitcoin's market share (BTC.D) has fallen below the key psychological threshold of 60%, the lowest level since January this year, reflecting that funds are rapidly flowing into Ethereum and other altcoins.
This trend has started to emerge since the end of June, with Bitcoin's market share declining by 10% in just over a month, down to the current 59.14%, sparking widespread discussion in the market about the impending "altcoin season."
Observing historical patterns, it can be found that during past bull markets, when Bitcoin's market share consistently falls below key support levels, it often marks the official start of altcoin season. Currently, Bitcoin's market share has fallen below the critical support level of 60%, also showing early characteristics of funds rotating towards altcoins.
This change in fund flow is also confirmed by the altcoin season technical indicators. Currently, according to BlockchainCenter, the altcoin index has risen to 51; while CoinMarketCap's altcoin season index is still at 41 (out of 100), indicating there is still room for growth to reach the index value that signifies altcoin season.
It is worth noting that this round of market activity highly aligns with historical patterns. During the bull market cycles of 2017 and 2021, when Bitcoin's market share fell below the 50% threshold, there was a significant rise in altcoins.
The crypto research organization Bull Theory points out that the weekly chart of Bitcoin's dominance has shown signs of fatigue, and if it breaks below the key support, it will trigger a rally in altcoins. The organization predicts that in the next six months, Bitcoin's market share may drop to 45%, while quality altcoins are expected to rise by 10 to 50 times.
However, market analysts also remind investors that Bitcoin's price remains relatively stable within its range, indicating that the current fund rotation is still within a healthy scope and may not have officially started the altcoin frenzy season.
In summary, with the dust settling from the U.S. midterm elections (expected this November), the cryptocurrency market is likely to welcome a sustained rebound, pushing the digital asset market into a new stage of diversified development.