Bitcoin Resurgence: Dominance Climbs Back to 57%

Amidst a mix of gains and losses over the past week, Bitcoin’s (BTC) price demonstrated no substantial overall shift, showcasing widespread market hesitation despite the ascension of pro-crypto Donald Trump as President of the United States. Interestingly, blockchain analytics firm Glassnode observes that broader trends indicate a positive outlook for this prominent crypto asset.

Bitcoin Dominance Increasing, What’s Next?

In a post on X from January 24, Glassnode claims that Bitcoin dominance is currently on the rise after a dip to approximately 54% in December 2024, during which the leading cryptocurrency faced a notable price correction of roughly 14.5%. After a remarkable price recovery in January, Bitcoin’s market share has now exceeded 57%, signaling a heightened preference among investors for BTC in the midst of considerable market unease.

As per Glassnode, this trend mirrors the 2020/2021 bullish cycle when BTC dominance hit a local low of 60% in November 2020, only to climb to 69% in January 2021, followed by another downturn.

Throughout this cycle, Bitcoin Dominance eventually peaked at about 72%, prior to the asset reaching $40,000, effectively doubling the earlier cycle’s record high of $19,764. Noteworthy, Bitcoin later surged to hit an all-time peak of $64,800 during that bullish trend.

Thus, should the leading cryptocurrency replicate such outcomes, investors might anticipate a baseline price target of $128,000 in this ongoing bullish run. Nevertheless, historical insights from Glassnode suggest that BTC is likely to begin exhibiting exponential growth only when its dominance reaches a peak value and starts to decline.

This period is commonly referred to as altseason, wherein altcoins typically outperform Bitcoin regarding market performance due to a shift in investors’ risk appetite. During this phase, altcoins see a larger influx of capital than Bitcoin, as they are perceived to offer potentially higher returns than the leading cryptocurrency. However, BTC would still initiate a significant price rally, crucial for the positive trajectory of the overall crypto market.

Is Altseason Delayed?

Given that BTC Dominance is increasing, it seems the altseason has yet to commence contrary to prior widespread speculations. Data from CoinMarketCap indicates that the altseason index currently rests at 46, reflecting a market that remains relatively neutral but is slightly shifting towards a Bitcoin Season.

However, this present market scenario can be linked to the ongoing uncertainty surrounding investors. Previous forecasts suggested that altseason would soon take off, with significant price increases expected in March.

Nonetheless, certain analysts like Ali Martinez now hypothesize that an altseason may not transpire during this bullish cycle due to the substantial rise of altcoins over the last four years. At the time of reporting, Bitcoin remains priced at $104,680, representing a 1.05% increase over the past day.