Bitcoin dominance hits 6-month lows as metric proclaims new ‘alt season’

Bitcoin (BTC), which is currently facing new competition from altcoins, is this month’s data show that it technically is already “alt season”.

According to CoinMarketCap and TradingView, BTC accounts for around 41% of total crypto market capitalization. This is the lowest figure since 2022.

Bitcoin loses market cap

Altcoin markets have seen a significant rebound in recent months after suffering from the Terra LUNA (now Terra Classic (LUNC),) collapse.

Altcoins are now enjoying their own revival, which is bringing Bitcoin bulls back from their 18-month lows at $17,600 in June.

CoinMarketCap reports that Bitcoin’s market share has fallen to its lowest level since mid-January. The largest altcoin Ether is taking the spotlight in recent weeks.

Ethereum’s market cap dominance has increased to 19% from the lows of 14.3% in June 19.

Bitcoin market dominance 1-week candle graph Source: TradingView

Altcoin bets are further supported by an specialized metric called “altseason”, which is a period when altcoins outperform Bitcoin as investments.

Altcoin Season Index currently has a score of 94/100. This is its best altseason reading since June 2021.

The more close to zero the score, the more Bitcoin is favoured over other altcoins. Alt season is once called “75% of Top 50 coins performed better over Bitcoin over the previous season”, its description states. A “season” refers to the last 90 days.

Screenshot of Altcoin Season Index Source: Blockchaincenter.

Long Bitfinex ETH bets fall to May lows

ETH’s performance on short timeframes this week was similarly unconvincing due to the controversy surrounding the Merge event.

Related: What’s the fork? The potential forked Ethereum token ETHW is currently trading below $100

BTC/USD lost $1,000 over 24 hours, and ETH/USD fell almost 7% in the hours prior to Aug. 9.

Analysts, including Michael van de Poppe, argued that the downturn was due to nerves about the August 10 United States Consumer Price Index readout.

Whale closed 300.000 Long positions on Bitfinex Let’s find out WHY this is important and WHAT it could mean for the market #Bitcoin #Ethereum #Crypto #Bitfinex #Futures pic.twitter.com/oiAotLM1Ll
— Maartunn (@JA_Maartun) August 8, 2022

Monitoring on-chain observed that Bitfinex, a major exchange player, had dramatically reduced their long ETH exposure. This was a sign that the downside was almost certain.

Longs were still at their lowest levels as they were immediately prior to May’s Terra incident.

ETH/USD 1-day candle chart (Bitfinex) Source: TradingView

Van de Poppe called for restraint in the face of upcoming ETH price actions.

He tweeted, “People are already setting targets of $300 and $600 for Ethereum if there is a slight correction.”

“Despite the fact that people are deeply entangled in their biases, there is no reason to do that. They won’t be objective and will not be able to see markets objectively because of that bias.

1 hour candle chart of ETH/USD (Binance). Source: TradingViewcom. You should do your research before making any investment or trading decision.
https://cointelegraph.com/news/bitcoin-dominance-hits-6-month-lows-as-metric-proclaims-new-alt-season

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