Bitcoin Dominance At Risk Of Crash To 40%, Why This Is Good For Ethereum, XRP, And Altcoins
Bitcoin's market dominance is nearing a long-term resistance level, historically linked to significant reversals. Currently at 63.2%, technical analysis suggests a potential drop to 40% or even 34.9%. A decline in Bitcoin dominance would likely benefit altcoins, leading to price increases for major ones like Ethereum, XRP, and Solana. The current crypto market is saturated with thousands of altcoins, making it crucial to filter for those with better performance potential, particularly in sectors like AI, RWA, and DeFi. While past cycles saw Bitcoin dominance drop significantly, the presence of Spot Bitcoin ETFs complicates the likelihood of a similar outcome, as these funds lock up Bitcoin long-term. Even if dominance falls, many altcoins may face severe losses once bullish sentiment wanes.
