Alt Season Potential
In the cryptocurrency world, Bitcoin (BTC) dominance is a key indicator that impacts the entire altcoin ecosystem. Interestingly, to trigger an alt season—a period of significant altcoin price increases—external investment isn't always necessary. A 10-20% drop in Bitcoin dominance may be enough for altcoins to begin strong growth.
Current Market Distribution
As of today, Bitcoin dominance stands at approximately 59%. For comparison, Ethereum (ETH) holds 14%, while the remaining 27% is attributed to other altcoins. The total cryptocurrency market capitalization is around $3 trillion, broken down as follows:
- BTC: $1.67 trillion
- ETH: $0.39 trillion
- Other altcoins: $0.8 trillion
Scenario 1: Bitcoin Dominance Drops to 49%
With a decrease in Bitcoin dominance to 49% (market cap dropping to $1.38 trillion):
- ETH remains at $0.39 trillion
- Other altcoins rise to $1.06 trillion
- Altcoin prices grow approximately 50%
Scenario 2: Bitcoin Dominance Drops to 39%
If Bitcoin dominance drops to 39% (market cap at $1.1 trillion):
- ETH remains at $0.39 trillion
- Other altcoins reach $1.34 trillion
- Altcoin prices increase by roughly 100%
Impact of Additional Factors: Hype and New Capital
If additional capital enters the market and general hype grows, we could see an extra 100% increase in altcoin prices or even more. If large capital investments in an asset exceed 80%, this may lead to a significant increase in its price – by 500-1000%.
Conclusion
The potential for alt season is significant, even amid internal market changes such as a drop in Bitcoin dominance. This opens up new opportunities but also requires a careful approach when selecting assets.
