- Altcoin Surge: Altcoins witnessed significant growth in a 48-hour period, bringing in over $48 billion and reshaping the crypto landscape.
- Bitcoin’s Stand: Despite Bitcoin’s dominance decline, its hold remains strong, especially with the looming prospect of the spot ETF approval.
Cryptocurrency investors witnessed a surge in altcoin activity, with Bitcoin’s dominance falling to 53% after hovering around 54% in recent days. Over the past 48 hours, the market saw a staggering influx of more than $48 billion into altcoins, reshaping the crypto landscape and hinting at a potential shift in market dynamics.
Altcoin Momentum Grows
Altcoins have experienced a substantial surge in the last two days, driving the total market capitalization (excluding Bitcoin) up by 6.83%, an equivalent of $48.66 billion. Notable altcoins like Solana and Optimism displayed remarkable gains, ranging between 14% to 31% within a single day.
This surge is a culmination of consistent accumulation observed in recent weeks, leading to significant assets moving away from exchange wallets. Coins such as Ethereum, Shiba Inu, Fetch, and Dent have notably recorded substantial outflows from exchange wallets, indicating a shift towards long-term asset holding strategies. Over the past three months, approximately $778 million worth of ETH, $54.6 million worth of SHIB, and around $48 million worth of FET have exited these exchange wallets.
Market Sentiment and Bitcoin’s Retreat
The market sentiment, reflected in the Crypto Fear and Greed Index, currently displays a greed sentiment, signaling bullish expectations. Prolonged periods of greed often prompt profit-taking sell-offs by investors, potentially leading to market corrections. However, despite this apparent bullish sentiment, the likelihood of a significant altcoin decline remains uncertain.
Bitcoin’s Dominance and Altcoins Season
Bitcoin’s dominance serves as a key indicator of the market’s overall health. A decrease in Bitcoin dominance signifies a rising influence of altcoins in the market, often termed as an “altcoin season.” Presently, Bitcoin’s dominance faltered to 53%, a minor shift after failing to surpass the 54% mark. Yet, this decrease doesn’t necessarily signal a shift in market trends. Bitcoin still maintains its prominent position, particularly in anticipation of the imminent spot ETF approval.
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