Bitcoin dominance is back to 2-month lows, fueling an altseason
In the last 20 days, Bitcoin (BTC) has lost four percentage points of its cryptocurrency market dominance , fueling an alt season . A dominance loss means key cryptocurrencies are outperforming the leader, absorbing capital. Notably, these events are also known as altcoins’ rallies, or ‘alt season s’, if they overextend for a larger time frame. Cryptocurrency traders usually migrate part of their gains to these altcoins, expecting to profit from their higher volatility, fuelling an alt season . In particular, the Bitcoin Dominance Index (BTC.D) is one of the most used indicators to signal this season . The index is calculated by dividing Bitcoin’s market cap by the total capitalization. Therefore, the decrease in BTC.D means investors are deploying more capital to other cryptocurrencies than BTC. As of writing, the index has aggressively plummeted to 51.43% after breaking down from November’s low at 51.82%. Bitcoin’s dominance has not been this low since October 16, which marks a...