Bitcoin Market Share Hits Lowest Point Since March
Bitcoin’s market dominance has recently seen its biggest weekly decline in over three years, dropping 5.8% to fall below 61%. This marks the lowest dominance level since March, indicating a major shift in trader behavior as capital rotates into altcoins.
The dominance rate reflects Bitcoin’s share of the total cryptocurrency market cap, and this sharp decline highlights how investors are increasingly diversifying into other digital assets. At the end of last month, Bitcoin’s dominance hovered near 66%, making this the steepest drop since June 2022.
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Altcoins Drive Total Crypto Market Cap to $3.8 Trillion
Over the past three weeks, the total cryptocurrency market capitalization has jumped from $3 trillion to $3.8 trillion, largely driven by altcoins such as Ethereum (ETH).
Altcoins are currently outperforming Bitcoin, attracting more capital and attention. This performance shift has made altcoin investment more profitable in the short term, as BTC consolidates below the $120,000 mark.
Correlation Between Bitcoin and Altcoins Weakens
One of the most critical trends emerging from recent market data is the declining correlation between Bitcoin and altcoins.
According to technical heatmaps and statistical models, the average correlation has turned negative, suggesting that altcoins are no longer moving in sync with Bitcoin.
This drop in correlation is often a precursor to sharp market moves and forced liquidations, especially for traders using leverage. When market behavior diverges significantly, it can catch both long and short positions off-guard, increasing the risk of liquidation.
Rising Volatility Ahead as Traders Shift Focus
The weakening correlation and shifting dominance indicate a market poised for increased volatility. Historically, similar patterns have led to massive liquidations and price swings.
Traders should prepare for sudden moves across altcoins, especially those with high leverage and low liquidity. While Bitcoin remains the most valuable crypto asset, its influence is clearly diminishing in the current cycle.
Conclusion
The recent drop in Bitcoin dominance, coupled with altcoin strength and weakening correlation, paints a picture of a rapidly evolving crypto landscape. As the total market grows and traders diversify, the days of Bitcoin dictating every market move may be fading—at least in the short term.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.