Altcoins continue to make up ground
While the BTC bulls are fighting at the USD 11000 mark on Tuesday, the alternative assets in the background are shaking the dominance of the first mover. A BTC Dominance Index of 60.4% makes the heart of many Altcoin friends beat faster. Coins like Chainlink, Cardano and Ethereum have been performing in their own league for weeks and the DeFi market is booming. Is this the beginning of a new Altcoin Season?
Bitcoin course in detail
At the time of the auction, the first mover is quoted at 11210 USD, which corresponds to a daily loss of 1.77%. After reaching the high for the year, the bulls are working to confirm the upward trend. Thereby the support lines at 11200 USD and 11000 USD turn out to be valuable fortresses. On the upside, the next resistances are at 11400 USD and 11800 USD. After the bull run of the past few days, investors are taking it easy on Tuesday (24 hour trading volume of about $22 billion). The volatile previous days are in stark contrast to the chart’s development after the Halving Event. This is mainly due to the disconnection from the traditional markets.
Altcoins catch up
The Bitcoin Dominance Index is an important tool for determining relations in the crypto market. To obtain the Index of a crypto currency, one needs the respective market capitalization, which is then related to the total market capitalization. Currently, approximately USD 207 billion of the total market capitalization (approx. USD 342 billion) is invested in BTC investments, resulting in a BTC Dominance Index of 60.4 %. This is a very low value in the annual chart; in the meantime, “digital gold” has even dominated the block-chain market with a clear two-thirds majority. But why does the Dominance Index fall shortly after crossing the magic threshold?
Why does the Dominance Index fall?
These days, many Altcoins provide good arguments for the BTC Dominance Index to continue to fall. First of all, the crypto world is eagerly awaiting the launch of Ethereum 2.0. With the change from Proof of Work to Proof of Stake, a new era with various innovations is starting for the Smart Contract-Coin. In keeping with this, the DeFi market is booming more than ever. However, Ethereum is only one of several drivers for a possible Altcoin Season. Chainlink rewarded its progress on Tuesday with a new all-time high (USD 9.73) and a jump into the top 10, while Cardano is also looking forward to further milestones after the successful Shelley update. Further back, projects such as Stellar, Tezos and Vechain lurk with exciting concepts. In short: The crypto space is working at full speed and the alternative assets are making claims for valuable market shares.