- Bitcoin’s dominance was around 55% at press time.
- The market remained in Bitcoin season despite a drop in its dominance.
Recently, Bitcoin [BTC] has experienced significant declines, causing its price to drop below the $60,000 mark.
This downturn in Bitcoin’s price also impacted its market dominance, which decreased, giving rise to a slight momentum in the altcoin market.
Bitcoin suffers price drops
AMBCrypto’s analysis of Bitcoin on a daily timeframe chart indicated a challenging start to August. The chart showed that BTC experienced consecutive declines that dropped its price below the critical $60,000 mark.
Also, the chart showed a low cost of around $49,000, which impacted the Bitcoin dominance.
However, a notable rebound recently pushed its price back to the $60,000 range, but it has since slipped again. At the close of the latest trading session, BTC saw a modest increase of 1.08%, ending at approximately $59,358.
Source: TradingView
It continued to hover around the $59,000 level at press time, with a slight decline of less than 1%.
Furthermore, the Relative Strength Index (RSI) remained below the neutral threshold, signaling that it was still entrenched in a bearish trend.
How price decline affected the Bitcoin Dominance
Bitcoin’s dominance in the cryptocurrency market revealed a significant downturn in August, correlating with a decrease in its price.
Data illustrated that Bitcoin’s market dominance dipped to approximately 53%, with the highest dominance recorded this month being around 56.5%.
At press time, Bitcoin’s dominance was at 55%. This was a slight recovery, attributed to a minor uptick in its price and declines in other cryptocurrencies.
Source: CoinMarketCap
The market cap trend indicated that Bitcoin accounted for over 55% of the total crypto market capitalization, totaling around $2.09 trillion.
Furthermore, Bitcoin’s market capitalization surpassed $1.1 trillion, underscoring its substantial influence within the market.
Bitcoin dominance vs. altcoin season
AMBCrypto’s analysis indicated that while Bitcoin’s dominance has experienced a decline, it has allowed a slight momentum gain for the altcoin season.
According to charts from the Blockchain Center, there has been an uptick in altcoin activity recently.
However, despite this, the market remained in a Bitcoin-dominated phase, as altcoins have yet to outperform Bitcoin consistently.
Read Bitcoin’s [BTC] Price Prediction 2024-25
For an official altcoin season to be declared, 75% of the top 50 coins must perform better than Bitcoin over the last 90 days.
Current data shows that this threshold has yet to be met, as many of these assets have also experienced declines similar to Bitcoin’s downturn.
