- Bitcoin’s dominance is now higher than 63%, which indicates a bearish environment for altcoins in all statistics
- Stablecoin flows hinted in a risk-off phase, which postponed every large Altcoin outbreak
It seems that Bitcoin [BTC] is now his grip on the wider crypto market.
With its dominance now more than 63%, the newest market structure can indicate deep struggles for Altcoins.
Source: Alfractaal
This shift was emphasized by Alfractale CEO Joao wedson In a tweet, the price of Bitcoin contrasts with an Altcoin seasons index.
At the time of writing, less than 25% of altcoins seemed to perform better than Bitcoin – a Bitcoin season of the textbook.
Source: Alfractaal
Four survivors in a sea of red
According to Alphractal, only 4 of the 57 altcoins have performed better than Bitcoin, who itself fell by -17.6% on the charts. Under the few outperformers, pancakeswap [CAKE] placed the only positive return with numbers of +10.5%.
Simply put, the underperformance is grim.
Most altcoins returned between -20%and -72%, with June -leading losses at -72.4%. Bitcoin, despite his own drop in the charts, still remains a relatively safe haven.
On the contrary, Altcoin “Dominance” tells us the same story.
Source: Alfractaal
Since November, the share of the Altcoin Market has fallen from 41% to 37%. Excluding stablecoins it actually fell from 35% to 28%.
Vanishing act of altcoin credibility
Bitcoin, Ethereum and Stablecoins to filter out, paints an even more gloomy image, with shares for the same fall from 23% to 20%. Given everything that happened, the aforementioned decline simply confirms a lack of conviction of investors in non-bitcoin assets.
Momentum on the market has also disappeared lately.
Source: Alfractaal
On December 5, the Altcoin Market Cap peaked at $ 1.43 trillion, with volume at $ 542.63 billion. However, by 3 April, those figures fell to $ 975.64 billion and $ 137.31 billion, which falls 32% and 296% respectively.
These figures have painted a picture of the trust of the decreasing investors.
Spikes in December were not maintained. And in March the trend was clearly south for both price and participation.
Bitcoin’s dominance increase also coincided with clear signals from the Stablecoin Supply Ratio (SSR).
Source: Cryptuquant
When peaks turn into warnings
23 February is noticeable as a turning point because both the price of Bitcoin and the SSR peaked at the same time.
Bitcoin peaked at $ 96,209, next to a 16.03 ssr. However, both have sharply reversed within three days. By April BTC fell to $ 81,800 and the SSR fell to 14.21.
This alignment can be seen as a sign of how liquidity shifts the exhaustion of the signal trend. It is important that, despite Bitcoin’s own losses, the dominance of the market has risen, it has not fallen.
Each indicator leads to the same conclusion – altcoin seasons are rare, short and vulnerable. The dominance of Bitcoin, now after 63%, reflects a consolidating market where capital flows into perceived safety.
Source: TradingView
Bitcoin or bust?
Optimism in the short term around Altcoins exists. However, data also showed that without a structural shift in dominance and liquidity, all meetings can remain insulated and short.
For now the smart money seems to remain parked in Bitcoin or wait on the sidelines.