Bitcoin’s value has seen a significant increase, breaking past the $65K barrier and reaching an impressive high of $92,903.98.
In the last 24 hours, the digital currency experienced a 1.34% surge, while over the past week, it showed a 6.35% rise according to CoinMarketCap data.
The monthly performance has been even more remarkable, with a sharp climb of 35.58%, showcasing Bitcoin’s robust momentum in the market.
Despite Bitcoin’s impressive performance, there are indications that the cryptocurrency landscape may be undergoing a transformation.
Is Bitcoin’s Supremacy in Danger?
An analysis by QCP Capital based in Singapore suggests that if Bitcoin’s dominance (BTC.D) falls below a critical level, it could trigger the long-expected surge of alternative coins.
The firm mentioned,
“While BTC and ETH remained stable over the weekend, SOL showed impressive performance surpassing both major currencies with a 17% rally from Friday’s lows. It appears that SOL and other alternative coins are gaining traction, especially with a pro-crypto Trump administration.”
Another X (previously Twitter) user commented,
Therefore, as alternative coins continue to rise, a crucial question emerges: Is the era of altcoins approaching?
Altcoins vs. Bitcoin
Historically, alternative coins usually flourish when Bitcoin stabilizes after a strong surge, as traders move profits into lower-cap assets.
However, QCP Capital warned that many investors are still wary, particularly as Bitcoin approaches the psychologically significant $100,000 mark.
Despite this caution, QCP speculated that a combination of a potential Donald Trump victory in the U.S. presidential elections and expected interest rate cuts by the Federal Reserve could trigger a substantial rally in alternative coins soon.
Bitcoin’s dominance (BTC.D) currently stands at 60.10%, a notable increase from 39.92% in November 2022.
In the last two years, Bitcoin has consistently outperformed alternative coins, leaving most digital assets lagging behind.
However, recent weeks have seen a shift, with alternative coins like Solana [SOL], Cardano [ADA], and Ripple [XRP] making gains and outshining Bitcoin.
This resurgence in alternative coin performance aligns with the rising anticipation of a pro-crypto position from a possible Trump administration, hinting at a potential shift in dominance between Bitcoin and alternative coins in the near future.
Interpreting the Latest Market Trends
According to the most recent CoinMarketCap data, Bitcoin saw a 6.47% rise in the past week, while alternative coins like Solana, XRP, and Cardano experienced increases of 15.77%, 64.33%, and 48.70%, respectively.
This trend is also evident in the uptick of the Altcoin Season Index from 33 to 39, indicating a heightened interest in assets such as XRP, Dogecoin [DOGE], and Bonk [BONK].
Therefore, if Bitcoin struggles to maintain its dominance, the current trend could signify the early stages of an altcoin season, providing investors with opportunities for greater diversity in their cryptocurrency portfolios.