Bitcoin Dominance Hits 6-Month Low As Metrics Proclaim New ‘Alt Season’
Bitcoin (BTC) is facing new competition from altcoins this month as data shows that — technically — it’s already “alt season.”
Figures from CoinMarketCap and TradingView show that BTC currently accounts for around 41% of the total crypto market cap – the lowest since the start of 2022.
Bitcoin loses its market value
After suffering at the hands of the Terra LUNA – now renamed Terra Classic (LUNC) – collapse, altcoin markets have rallied considerably in recent months.
Alongside Bitcoin’s return from an 18-month low of $17,600 in June, altcoins have enjoyed their own renaissance, one that is now giving Bitcoin bulls a run for their money.
According to CoinMarketCap, Bitcoin’s market share is now at its lowest since mid-January, with the largest altcoin Ether (ETH), in particular, stealing the spotlight in recent weeks.
From a low of 14.3% on June 19, Ethereum’s market cap dominance is now 19%.
The case for altcoin play is further bolstered by a dedicated metric tasked with calling the “altseason” – a period in which altcoins outshine Bitcoin as investments.
With a normalized score of 94/100, the Altcoin Season Index is currently flashing its most compelling alt-season reading since June 2021.
The closer the score is to zero, the more the calculation favors Bitcoin over altcoins. The alt season is once called “75% of the top 50 coins outperformed Bitcoin in the last season,” the description explains, adding that a “season” corresponds to the last 90 days.
Bitfinex ETH long bets crash to May lows
Meanwhile, the controversy surrounding the upcoming Merge event meant that ETH performed similarly unconvincingly on short time frames this week.
Related: What the fork? Ethereum’s potential forked ETHW token is trading below $100
In the 24 hours to the time of writing on August 9, ETH/USD was down nearly 7%, while BTC/USD shed $1,000 in hours on the day.
Nerves over the August 10 US consumer price index (CPI) reading added to the downside, analysts including Cointelegraph contributor Michaël van de Poppe argued.
Whale closed 300,000 long positions on Bitfinex
Let’s find out WHY this is important and WHAT it could mean for the market #Bitcoin #Ethereum #Crypto #Bitfinex #Futures pic.twitter.com/oiAotLM1Ll
— Maartunn (@JA_Maartun) August 8, 2022
However, on-chain monitors noted that a major player on the exchange Bitfinex had drastically reduced its long ETH exposure, indicating a belief that downside was all but guaranteed.
At the time of writing, longs were at the same lows as just before May’s Terra event.
Van de Poppe nevertheless asked for limitation when it came to the upcoming ETH price action.
“People are already flashing $300 or $600 targets for Ethereum on the first little correction,” he tweeted.
“There’s literally no need for it, despite people being heavily locked into their bias. Because of that bias, they won’t be able to see the markets objectively.”
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