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Is Bitcoin Dominance topping out? If so, traders should expect…
Bitcoin’s dominance has been steadily increasing since 2024, with a significant surge following the April 2024 halving. However, there are signs that this trend may be reversing, with Ethereum [ETH] having surpassed Bitcoin in July. The market capitalization of ETH rose by 44% from its early-July lows to reach $3,426 at press time.
The recent outperformance of ETH has sparked concerns that the dominance of Bitcoin [BTC] might be topping out. If this trend continues, traders and investors should expect…
Firstly, a shift in market momentum
As Ethereum’s value continues to rise against BTC, it appears unlikely that Bitcoin can continue its upward trajectory while ETH maintains its current pace. This could lead to a significant adjustment in the cryptocurrency market capitalization charts.
If Bitcoin dominance is indeed topping out, this could lead to a broader market shift away from the largest cryptocurrency and towards other assets, such as Ethereum or even alternative cryptos. This could be driven by institutional investors seeking exposure to alternative high-performing assets within the crypto space.
Increased risk for Bitcoin traders
The current market conditions indicate that investors are becoming increasingly risk-averse. If the dominance of Bitcoin continues to decline, this trend may continue, putting pressure on Bitcoin’s price and potentially leading to a correction in the short-term.
However, it is essential for traders to remember that this does not automatically mean the end of the bull run. In fact, it could be seen as an opportunistic buying signal for those willing to take the risk.
A golden cross in ETH/BTC
Crypto analyst Matthew Hyland has stated that if the weekly chart of ETH/BTC can continue its upward trend, there is a 99% chance that Bitcoin dominance has reached its peak. However, this does not necessarily mean the end of the bull run for Bitcoin itself.
What this development would indicate is a period of consolidation or even a slight correction in Bitcoin’s price before it can continue to grow stronger.
Source: ambcrypto.com
