Bitcoin -Dathinance sinks like Ethereum, XRP Rise

Bitcoin’s grip on the $ 4 trillion cryptocurrency market can come loose, but it is still too early to tell whether that will translate into a long-term momentum period for Altcoins, Adrian Fritz, head of research at Switzerland-based asset manager 21shares, said said Decrypt On Friday.

Although the price of many altcoins is rising, “there must still be a trend removal” with the so-called Dominance of Bitcoin to start a so-called Altcoin season, he argued.

For $ 2.3 trillion, Bitcoin’s dominance on Friday was around 61%, according to Coetecko. At a certain point, it was actively representing no less than 65.5% of the total value of the crypto market last month, over 17,000 cryptocurrencies followed by the crypto data provider.

The drop is because Ethereum and XRP have risen by 20% to $ 3,600 and 23% in the past week to $ 3.46, with the latter affecting a record high. Meme coins, including the Solana-based Bonk and Ethereum-based Floki, have now risen more than 45%.

Almost 60% of countless markets users predict that Ethereum will reach a record high this year. (Countless markets is a Dastan product, DecryptThe parent company.)

In earlier market cycles, Altcoins have demonstrated strength after the price of Bitcoin. The trend suggests that traders rotate to more volatile assets as the bullmarkt progresses, looking for higher returns. However, the cryptomarkt has changed dramatically in recent years.

This includes the debut of Spot Bitcoin-listed funds in the US, a product that does not allow investors, or individually or institutional, to another person actively reaches on the chain.

“It is difficult to imagine that the dominance of Bitcoin is falling to levels that we have seen in earlier bull markets,” said Fritz. “In the past year, the spotlight was certainly on Bitcoin.”

Interest rates of the Federal Reserve, if they take place later this year, would be a “large catalyst” for an Altcoin season because they would probably inject liquidity on the market, Fritz said. Until something happens from a macro perspective, he said it will “be a little euphoria in the market.”

The sentiment was reflect By AksHat Vaidya, CIO of risk capital company Maelstrom, which said Decrypt That “we see early signals from an ‘altcoin season’, but it is not yet completely underway.”

With Momentum for Crypto legislation on Capitol Hill, some investors are probably racing to go into the price Regulatory tail wind Analysts told for the digital assets sector told Decrypt Earlier this week. Fed Futures traders do not expect the Central Bank to lower the rates until September, per Cme fedwatch.

Yet there are some signs that the Altcoin season can be close by, such as Crypto data provider Coinmarketcap’s Altcoin season indexWho over the past 90 days looks at the performance of the Top 100 cryptocurrency per market capitalization. On Thursday, the Index 47 before it dropped to 43 on Friday. A value of 100 indicates that the Altcoin season is in full swing.