“Even If Altcoins Rise, BTC Dominance Is Solid”…It Could Be A Sign Of Capital Inflow
Despite the recent rise of altcoins, Bitcoin (BTC) market share, or dominance, is hardly shaking. Cryptocurrency analyst Matthew Hyland analyzed, “BTC dominance is still maintaining a strong level, and a further decline in this figure is necessary for a full-fledged altcoin rally to start.”
In fact, BTC dominance only fell by about 1.53% last week, but many altcoins showed a significant upward trend. Generally, the market sees the fall of Bitcoin dominance as the beginning of the 'altcoin season', but this time a different trend than the existing conventional wisdom has appeared.
In this regard, Cointelegraph interpreted, “The recent rise in altcoins occurred even when BTC dominance was not significantly shaken,” and “this suggests that new capital is entering the market, not the movement of existing funds.”
As new inflows begin to be detected throughout the market, there is also an analysis that this may be an early signal that liquidity in the entire cryptocurrency market, as well as altcoins, is expanding.