Bitcoin’s dominance has dropped below 57%, marking a major moment in the crypto world. The drop, highlighted by a clear bearish breakout from a rising wedge pattern, signals the official start of the 2024-25 altcoin season. As Bitcoin struggles to reach the $100,000 mark despite weeks of strong bullish momentum, the focus is now shifting to altcoins.
Bitcoin’s dominance drops below 57%
Prominent cryptocurrency trader Captain Vibeck has confirmed that the 2024-25 altcoin season has officially begun. He pointed to this shift with a detailed price chart showing that bitcoin’s dominance used to rise in a wedge pattern but has now fallen below 57% after failing to break the $100,000 mark. According to Vibec, a closer look at Bitcoin’s dominance chart shows an increased risk of accelerating the recent decline.
If the trend line breaks, chart analysis suggests that Bitcoin’s dominance may again drop to around 50%, highlighting the growing focus on altcoins.
Index of the season of altcoins up to 78
Along with the collapse of Bitcoin’s dominance, the altcoin season index rose to 78, surpassing the critical level of 75%. Captain Vibek points out that when the index exceeds 75%, it shows that the top 50 cryptocurrencies have been performing better than Bitcoin over the past 90 days. This is a clear sign that altcoins are currently outperforming Bitcoin.
However, currencies such as XRP have risen by 360% in the last thirty days. Solana recently reached new highs, touching the $260 mark. Cardano rose more than 208% in the same period, and Ethereum now aims to retest the $4,000 level.
Bitcoin falls, XRP rises 21%, and Tether surpasses it in the market
XRP (XRP-USD), THE ORIGINAL TOKEN OF XRP LEDGER, WAS THE WINNER OF THE DIGITAL ASSET MARKET ON MONDAY, RISING 21% ON THE DAY TO BECOME THE WORLD’S THIRD-LARGEST CRYPTOCURRENCY BY MARKET CAPITALIZATION.
The volume of money flowing pushed the coin’s market capitalization to $142 billion, surpassing the value of Tether stablecoin (USDT-USD) of $134.5 billion. It now trails Bitcoin (BTC-USD) and Ethereum (ETH-USD) in terms of market capitalization.
Over the past month, XRP’s price has surged nearly 350% as traders look forward to a more favorable regulatory environment when President-elect Donald Trump takes office on January 20. XRP has been the subject of a court case against Ripple, with the Securities and Exchange Commission, the stock market alleging that XRP is an unregistered security.
Ripple is a payment platform that uses XRP to facilitate transactions between financial institutions, businesses, and organizations. Fox reported on Friday that Ripple is also close to getting approval from New York’s cryptocurrency regulator for its own stable coin pegged to the U.S. dollar. The move will give Ripple customers an alternative to XRP, which has been historically volatile.
The Trump administration has said it will consider easing cryptocurrency regulations when he takes office, with the installation of a new SEC chief to replace Gary Gensler. The president-elect also said that the new government will consider implementing Bitcoin inventory in the United States.
Elsewhere, the price of Bitcoin fell 2% to just under $95,000. Observers of the world’s largest cryptocurrency have been betting on when it will reach the $100,000 mark, as its rally has lost momentum in recent weeks. The value of Bitcoin has risen since the beginning of the year by about 114%. The price of Ethereum fell by about 3% by late morning in London to about $ 3579.
Bitcoin balances on exchanges reach the lowest level
Bitcoin balances on cryptocurrency exchanges have reached historical lows, with on-chain data indicating a rapid depletion of available inventory. recent note from 10XResearch on Sunday highlighted this trend, which was confirmed by a sharp drop in the amount of bitcoin available for purchase.
This contrasts sharply with trends observed in late summer when a sudden influx temporarily replenished the exchange’s reserves, according to the report. However, this increase in inventories did not occur this time, exacerbating the supply crisis.
Analysts say that Bitcoin and the broader cryptocurrency market have been boosted by favorable catalysts that point to continued growth in the coming year.
President-elect Donald Trump has pledged to create a Bitcoin reserve in the United States while protecting cryptocurrency mining interests and formulating a favorable industrial policy.
This helped push the price of bitcoin to record highs just under $100,000 and reshaped the asset’s image as a store of value in the eyes of investors.
On-chain analyses suggest that long-term bitcoin holders – often seen as a stabilizing force in the market – hold on to their positions strongly, limiting the flow of bitcoin to exchanges and reducing liquidity.
Young Ju had previously explained why the altcoin season was delayed. According to him, institutional investors and exchange-traded funds (ETFs) are leading Bitcoin’s current rally, and this group does not buy on exchanges and does not care much about bitcoin alternatives.
Since retail is unlikely to drive any significant rise in Bitcoin in the future, altcoins will have to find other ways to attract liquidity apart from relying on bitcoin turnover.
