Bitcoin’s grip on the overall cryptocurrency market has weakened, with its dominance recently falling to 60.76%.
This decline marks a decrease from the 65% market share Bitcoin held just weeks prior. Concurrently, the market share attributed to alternative cryptocurrencies (altcoins) has risen significantly to 39.24%, up from 35%.
Market analysts interpret this shift as a clear signal that an ‘altcoin season’ is underway. During such periods, investors typically seek higher returns by moving capital towards altcoins, which are perceived as riskier assets compared to Bitcoin.
Analyst James Wynn attributes this recent trend to a growing ‘risk-on’ sentiment among market participants. This optimism is encouraging diversification away from the largest cryptocurrency into the broader altcoin market.
The decline in Bitcoin’s dominance reflects a broader appetite for a more diversified crypto portfolio, leading to rising prices and market valuations for numerous alternative digital assets.