Top crypto expert Crypto Tony recently shared his prediction on Twitter that altcoin dominance may experience a shake-up by June. According to his tweet, he expects a 10% drop in altcoins in May, with the real excitement starting in June and continuing through August, provided there is demand at lower support levels around a $336 billion market cap. This forecast comes as Bitcoin (BTC) dominance shifts and altcoins gain momentum in the ongoing bull market.
Altcoin Season on the Horizon
As Bitcoin’s dominance over the crypto market decreases, it often signals the beginning of an altcoin season. Ethereum, the world’s second-largest cryptocurrency, has been outperforming Bitcoin recently, attracting more investors to its advanced blockchain technology.
Data from TradingView reveals that Bitcoin’s dominance rate increased from 42% to 48% during the first quarter but has struggled to break that level so far this month. The metric has fluctuated between 38% and 48% for nearly two years, with declines from 46% to 48% coinciding with substantial gains in altcoins.
Past Performance and Future Outlook
The chart indicates that the total market cap of altcoins rose over 60% to $1.39 trillion within two months after Bitcoin’s dominance rate dropped from 48% in July 2021. Similar bearish turnarounds in the dominance rate in mid-October 2021 and June 2022 also pushed altcoin valuations higher. If history repeats itself, the crypto market could witness another surge in altcoin value.
At the time of writing, Bitcoin is trading at $27,495, while Ethereum is valued at $1,852. As the market unwinds, investors and traders eagerly await the market’s full descent into a bull run.
As always, investors should approach predictions cautiously and consider multiple factors before making decisions in the volatile crypto market.