Bitcoin dominance declines as altcoins bring $50 billion into the market in 48 hours
- Bitcoin dominance fell to 53% after nearly crossing 54% over the past week.
- Altcoins raked in more than $48 billion in the last two days.
- Crypto Fear and Greed index is suggesting rising bullishness with altcoins seeing a decline in their exchange supply.
The crypto market observed significant profits in the past two days as many altcoins registered considerable growth. This increase had an impact on the biggest cryptocurrency in the world as Bitcoin’s dominance took a hit. Going forward, a similar development might take center stage as investors are preparing for further increases.
Altcoins make a dent
The total crypto market capitalization, excluding Bitcoin, grew by 6.83% in the last 48 hours, bringing in $48.66 billion. Digital assets, including Solana, Optimism, and more, noted increases ranging from 14% to 31% in just a day.
This is largely due to the accumulation observed in the last few weeks, which has resulted in tens of millions of dollars worth of assets moving away from exchange wallets. Ethereum, Shiba Inu, Fetch, and Dent emerged as the largest coin-offloading exchange wallets. In the last three months, $778 million worth of ETH, $54.6 million worth of SHIB, and about $48 million worth of FET have exited the exchange wallets.
Top altcoins exchange wallet
This is hinting at a long-term increase in price, which makes sense since the market is pretty bullish at the moment. The Crypto Fear and Greed Index is exhibiting greed in the market. Generally, long periods of greed tend to result in corrections induced by sell-offs by investors attempting to book profits.
Crypto Fear and Greed Index
However, considering the crypto market is actually awaiting stronger bullish cues, the altcoin will not be seeing any major decline anytime soon.
Bitcoin loses dominance
The impact of the altcoins taking a lead on Bitcoin is not very positive. Bitcoin dominance shows the overall percentage of the market captured by the world’s biggest crypto asset. Whenever this dominance increases, the altcoins tend to lose their influence in the market, but an increase in altcoins’ value causes BTC to lose its dominance.
The latter is considered the signal of altcoin season, which at the moment is far from taking place anytime soon. That said, Bitcoin dominance did take a hit on Thursday as dominance fell to 53% after failing to breach 54%.
Bitcoin dominance
However, the decline is not significant enough to suggest a change in trend or the bullish narrative changing hands since BTC is holding center stage presently owing to the upcoming spot ETF approval.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
