'Altseason' Ends in 2024: Bitcoin Dominance to Reach 71% Before Returning

New analysis suggests that Bitcoin needs to dominate the entire cryptocurrency market with a 70% level to kickstart the 'altcoin season' again. In his latest X content, renowned analyst and trader Rekt Capital has warned that the most recent altcoin season has come to an end. Analyst: Bitcoin dominance could increase by 16% or more This week, Bitcoin's market capitalization has surged to its highest level in four years as altcoins suffer significant losses amid a sharp decline in risk assets. Data from Cointelegraph Markets Pro and TradingView confirms a dominance level of 64.3% before returning to 61%. As BTC price continues to hold steady amid macroeconomic instability, attention is shifting towards the future prospects of the altcoin market. However, for Rekt Capital, this sign has appeared for a long time. When looking at the recent history of the Bitcoin dominance chart, he identified the drop below 55% in early December as a definite bottom. "That is the bottom of Bitcoin's dominance, essentially confirming the end of the Altcoin Season we saw in late 2024 BTC," he concluded. The dominance has increased by +6% since then.

That perspective is completely contrary to the hope that altcoins can soon regain the position lost to the largest cryptocurrency. Continuing, Rekt Capital stated that the return of the last altcoin will come — but not before dominance increases by at least 16% from current levels. This will bring the current market cycle in line with historical standards. "If history repeats itself, the long-awaited Altseason will truly begin when Bitcoin Dominance rejects the 71% level (in red)", he commented alongside the illustrated chart.

"Inefficient altcoin" has many causes. Others are not sure that Bitcoin can go further. Note the previous 64% decline, the famous trader Titan of Crypto called this event "very pessimistic". "Rarely do I see a Gravestone Doji with such intensity on BTC.D," he said to X followers. “Is this a sign of Altcoin awakening?”

Meanwhile, for the source of Stockmoney Lizards transactions, whether Bitcoin continues to have a strong impact is a matter to wait and see. “There are several factors contributing to the underperformance of Altcoin compared to Bitcoin. Firstly, we are still in the Bitcoin Euphoria phase after the halving. This is driven by ETF buying activity, as well as Trump's plan for a strategic Bitcoin reserve fund,” a deep-dive post on X on this topic on February 5th. Its analysis indicates that a breakthrough on the largest altcoin Ether is a prerequisite for the broader altcoin market to continue to grow.

ETH is in a long-term downtrend compared to Bitcoin, which has helped push BTC's market dominance higher.