Altcoins are having a moment – Is Bitcoin losing control of the market?

Key Points

1. Altcoins have been outperforming Bitcoin recently, leading to a drop in Bitcoin's market dominance from over 66% in early July to just above 60%.

2. The decline in Bitcoin dominance without corresponding inflows suggests traders are overexposed to high-risk altcoins, increasing vulnerability to price shocks.

3. Market instability is rising as liquidity becomes fragmented due to weakening correlations between Bitcoin and altcoins.

4. Altcoins offer higher upside potential but come with amplified risks, especially without strong support from Bitcoin.

5. The current market conditions may lead to violent unwinding of positions if trends reverse, highlighting the need for caution.