In recent days, Bitcoin has lost four percentage points of dominance, and the effects could already be before our eyes. In fact, as there is no significant outflow from the sector, BTC seems to leave room for growth for the rest of the crypto ecosystem, and several altcoins are there to signal this, absorbing all the capital and outperforming BTC.
As in previous cycles, therefore, it seems that on this occasion too traders are migrating their BTC holdings to other cryptocurrencies, expecting higher earnings from riskier assets, and collaterally causing greater volatility of alts.
It goes without saying, therefore, that the Bitcoin Dominance Index is the most reliable tool for verifying whether an altcoin season is underway or not. And the data of recent days, if repeated for a significant period of time, could confirm it.
BTC.D fell significantly (and quickly) to 51.43%, and had not been this low since last October 16, before a rise in early December to 55.35%.
Likewise, the total market cap excluding Bitcoin hit $796.955 billion, an incredible growth of 55.57% since October 16. In January 2023 alone, the alt market marked $468 billion.
Solana has certainly been leading the alt sector in recent weeks, with a significant performance since the beginning of 2023 (despite still being far from its ATH), the overtaking of coins like BNB is there to prove it.
Obviously, given the nature of altcoins characterized by lower liquidity and greater volatility, the scenario could change quickly, but the performance of the latter could create a virtuous circle in turn functional to renewed investor interest and new retail liquidity.
