Bitcoin’s dominance in the crypto market is increasing, while altcoins are undergoing a concerning free fall. This situation highlights the volatility and unpredictable nature of the crypto market for investors.
Bitcoin’s Supremacy in the Crypto Market
In July, the Altcoin Season Index (ASI), which tracks the relative performance of altcoins against Bitcoin, briefly reached the promising threshold of 46, sparking investor anticipation for an altcoin season. However, the index has since plummeted to 24.
This decline of over 47% from its peak indicates that the market is once again favoring Bitcoin, and an altcoin season remains distant. Despite brief periods of relief earlier this year, BTC has recorded an impressive 20.4% increase over the past two weeks. In contrast, Ether has only risen by 16.2% during the same period. The anticipated listing of Ether spot ETFs on July 23 had the potential to be a turning point for ETH and other cryptos, but its impact on the market was modest. Bitcoin continues to outperform its competitors.
Altcoins struggle to find their momentum
The last significant altcoin season occurred during the 2021 bull run. Since then, these cryptos have struggled to maintain consistent gains against Bitcoin. The collapse of major entities like FTX and Terra/LUNA in 2022 has reinforced BTC’s dominance. Additionally, the valuation of smart contract cryptos has decreased by 0.1% in the past 24 hours, currently sitting at $724.05 billion. This decline highlights the challenges altcoins face in gaining ground. The persistence of Bitcoin’s dominance suggests that investors may have to wait longer for an altcoin-driven resurgence. Recent innovations in the crypto market, including Ether ETFs, have not yet translated into significant momentum for altcoins. As long as the ASI score remains below 75, Bitcoin continues to be the preferred choice for investors.