- Bitcoin’s dominance was around 55% at the time of writing.
- The market remained in Bitcoin season despite a decline in its dominance.
Recently Bitcoin [BTC] has seen significant declines, pushing its price below the $60,000 mark.
This drop in Bitcoin’s price also affected its market dominance, which decreased, giving rise to slight momentum in the altcoin market.
Bitcoin is suffering from price drops
AMBCrypto’s analysis of Bitcoin on a daily timeframe indicated a challenging start to August. The chart showed that BTC experienced consecutive declines, causing the price to fall below the critical $60,000 mark.
Also, the chart showed a low cost of around $49,000, which had an impact on Bitcoin dominance.
However, a notable rebound recently pushed the price back to the $60,000 range, but it has since fallen again. At the end of the last trading session, BTC saw a modest increase of 1.08%, ending at around $59,358.
Source: TradingView
At the time of writing, the stock was hovering around $59,000, with a slight decline of less than 1%.
Moreover, the Relative Strength Index (RSI) remained below the neutral threshold, indicating that it is still anchored in a bearish trend.
How Price Drop Affected Bitcoin Dominance
Bitcoin’s dominance of the cryptocurrency market revealed a significant downturn in August, which correlated with a decline in its price.
Data illustrated that Bitcoin’s market dominance dropped to around 53%, with the highest dominance recorded this month being around 56.5%.
At the time of writing, Bitcoin’s dominance stood at 55%. This was a slight recovery, attributed to a small price increase and declines in other cryptocurrencies.
Source: CoinMarketCap
The market capitalization trend indicated that Bitcoin accounted for more than 55% of the total cryptocurrency market capitalization, with a total amount of approximately $2.09 trillion.
Furthermore, Bitcoin’s market capitalization surpassed $1.1 trillion, underscoring its substantial influence within the market.
Bitcoin dominance vs altcoin season
AMBCrypto’s analysis indicated that while Bitcoin’s dominance has waned, this has allowed for slight momentum gains for the altcoin season.
According to charts of the Blockchain CenterThere has been an increase in altcoin activity lately.
Despite this, the market remained in a Bitcoin-dominated phase as altcoins are still not consistently outperforming Bitcoin.
Read Bitcoin’s [BTC] Price forecast 2024-25
To declare an official altcoin season, 75% of the top 50 coins must outperform Bitcoin in the past 90 days.
Current data shows that this threshold has yet to be met, as many of these assets have also experienced declines similar to Bitcoin’s decline.