The aggregated crypto market has not been able to capture the full momentum that Bitcoin has experienced in recent times. The flow of funding for Bitcoin suggests that investors would like to be exposed to the potential positive effects of the growing status as a ‘hard asset’.
The surpassing power of the benchmark cryptocurrency is because it shows immense signs of bullishness against a dismal global backdrop.
The popularity among traditional investors has also grown tremendously as prominent Wall Street investors like Paul Tudor Jones have offered optimistic prospects for BTC.
All of this has led to its dominance over the aggregated market increasing, with many altcoins seeing poor performance against their BTC trading pairs.
This has led an analyst to note that there may be a capitulation for these smaller digital assets.
Bitcoin Garners dominates the Crypto market
Bitcoin’s dominance over the crypto market has been growing since the start of the upward trend in early 2020 began to stagnate in mid-February.
At this point, BTC’s market dominance was around 60%, and the turbulence in subsequent months eventually led to an annual high of 68% last week.
This suggests that investors are on the run from higher risk observable assets in favor of the benchmark cryptocurrency. The global media coverage that comes from comments by Paul Tudor Jones and others may also play a role in this trend.
Today, virtually all of the top 20 altcoins trade by market capitalization against their BTC trading pairs.
A similar trend has been observed in recent weeks, as the recent rise to $ 10,000 was likely caused by investors withdrawing funds from altcoins.
Altcoins can settle soon, paving the way for the next “Altseason”
The long-awaited ‘altseason’ has led to huge disappointment among investors, as many smaller cryptocurrencies are trading against Bitcoin against multi-year lows.
A pseudonymous crypto trader spoke about this a recent tweetand explained that he believes many altcoins will see capitulation soon.
He also notes that this could offer “huge opportunities” to investors.
ETH on the way to levels not seen since 2016. LTC trading below 2014-2016 prices. XRP on its way to levels of 2014, 2016 and 2017. The alt market looks like it can capitulate soon. It looks like the worst is yet to come, but it should offer tremendous opportunities after that, ”he explained.
Another trader this feeling repeated, noting that he believes Bitcoin continues to rise while the decline in altcoins may provide the perfect conditions for “altseason”.
“I hope BTC will continue to perform well in the coming months as ALTS capitulates, because that would be the perfect conditions for any season.”
Featured image from Unplash.