Bitcoin Dominance Rises Again: What Are the Expectations for the Altcoin Rally?

Following Trump's victory in the U.S. elections, there is significant activity in the crypto market. Bitcoin has reached an all-time high of $89,956, ushering in a new era in the crypto world. However, investors are curious whether a season of altcoins will follow after Bitcoin's dominance peak. Crypto analysts are divided on this issue.

Will Bitcoin's dominance trigger an altcoin season? Some analysts argue that as Bitcoin's dominance wanes, altcoins will take the lead in the market. Historical data suggests that declines in Bitcoin's dominance typically precede significant rallies in altcoins. Analysts who believe that Bitcoin's long-term upward cycle is nearing its end claim that an altcoin season is on the horizon.

Past data refers to cycles where altcoins took over after Bitcoin reached peak levels. Notably, in previous cycles, altcoins demonstrated strong performance following declines of around 330 to 340 days.

An altcoin season may be further away On the other hand, more pessimistic analyses believe that a true altcoin season has not yet started. The Altcoin Season Index currently stands at 33, which is significantly below the 75 level typically signaling an altcoin season. Those who think there's still time for an altcoin rally argue that the market is merely in a preparatory phase for now.

Additionally, it is noted that Bitcoin often experiences a substantial rally before altcoins dominate the market. The Altcoin Season Index reaching the 75 level is seen as the beginning of a genuine altcoin season.

Record trading volume for Bitcoin Following Trump's victory in the U.S. elections, Bitcoin has garnered significant attention, with trading volumes reaching an all-time high. According to a Matrixport report, Bitcoin's trading volume surpassed $145 billion in the past 24 hours, hitting a new peak. The crypto market surged following Trump's crypto-friendly promises, which in turn increased the interest of individual investors.

While Bitcoin remains dominant, analysts hold differing opinions on when an altcoin season might occur. Some believe this transition is imminent. However, considering the low values in the Altcoin Season Index and Bitcoin's strong performance, it is thought that an altcoin season may be postponed for a while longer.