- The combined dominance chart was nearing its previous tops.
- Capital influx into the crypto sphere through rising BTC prices was essential for a healthy altcoin season.
Bitcoin [BTC] trended upward in September and October after slowly but steadily falling lower since March. On the 29th of October, it nearly retested its all-time high, going as far north as $73.6k before facing rejection.
Analysis of on-chain metrics revealed an increase in large transaction volume and bullish sentiment in lower timeframes.
On higher timeframes, capital influx and rotation will be key for Bitcoin and altcoin markets in this cycle.
How close are we to an altcoin season?
Source: Benjamin Cowen on X
Benjamin Cowen, CEO and Founder of Into The Cryptoverse, expects an altcoin season “next year“.
He noted that the combined dominance of Bitcoin, Ethereum [ETH], USDT, and USDC reached 82% in 2020 and 2023, forming tops before the altcoin market rallied.
At press time, it was at 80.51%, nearing its top. A rejection and sustained downtrend would indicate that Bitcoin and Ethereum were being outpaced by the rest of the altcoin market.
Additionally, a downtrend in stablecoin market share would signal investors buying crypto.
Cowen expects this to begin in 2025, meaning altcoin holders need more patience before seeing large gains.
