Major crypto update: Bitcoin struggles for momentum

The crypto market has seen significant shifts recently as the United States (U.S) has approved three major bills i.e., genius act, clarity act, and Anti-CBDC bill. Due to these events, bitcoin rises to its historical value.

However, the recent shift has turned the tables. Bitcoin dominance in the crypto market has dropped to its lowest level in four months.

What’s happening?

Bitcoin’s market share shrinks as other cryptocurrencies (altcoins) like ethereum are surging. 

In the last five days, bitcoin dominance fell from 64.9% to 60.9%. This decline marks the lowest points in four and a half months and reflects the market's growing preference for altcoins. 

This shift has urged traders to think that is “altcoin season” about to begin?

While Bitcoin’s price holds below $120,000, altcoins are gaining strength, reducing Bitcoin’s dominance. Ethereum is on the top with a 27% raise this week nearing $4000 and pulling other altcoins higher.

For “altseason” to come in its true sense, 75% of top altcoins must outperform Bitcoin for 90 days. Right now, only 50% of them have, which reflects that we’re close to this but not quite there yet.

What’s next?

If ethereum and other altcoins continue to surge faster than bitcoin, there’s a possibility that altcoin season could start by early next month. Keeping in view the current situation, the traders are shifting money from bitcoins to altcoins to get maximum profit. However, it is important to note that this will be a short-term gain. For now, traders have their eyes set on Ethereum’s push to $4000 as if it breaks through, more altcoins will follow.

Bottom line

The crypto market is going through a major shift as altcoins are stealing the spotlight from bitcoin. If this trend sustains, we could enter a full blown “altcoin season” where smaller cryptocurrencies rise while bitcoin takes a backseat.