Bitcoin dominance has reached a new cycle high above 66%, marking its highest level in four years. This development suggests a challenging environment for altcoins and casts doubt on the prospect of an immediate altcoin season.
Crypto analyst Finsends noted on X that although Bitcoin dominance feels like it may not decline anytime soon, a significant correction could begin near current levels. He estimates Bitcoin dominance could peak around 68.56% in July before dropping to approximately 48%. Such a decline would create favorable conditions for altcoins to gain and potentially outperform Bitcoin in the year’s second half.
Analyst Michaël van de Poppe also commented on the rising Bitcoin dominance, pointing out that the altcoin season indicator is presently at its lowest level in two years. Historically, the indicator’s lows have occurred in June or July, suggesting a possible pattern. While he did not predict an exact start for altcoin season or a Bitcoin dominance peak, van de Poppe maintains confidence that altcoins will eventually recover and outperform.
Van de Poppe further explained that altcoins need momentum from Ethereum, which often follows a Bitcoin price bottom. He said that Ethereum’s upward movement usually leads to decreasing Bitcoin dominance and sets the stage for altcoins to outperform significantly. However, he advises investors to remain patient for this shift.
At the time of reporting, Bitcoin trades near $101,700, showing a decline over the past 24 hours, according to CoinMarketCap data.