Cryptocurrency markets are reshaping after last week’s major correction. Jan Happel and Yann Allemann, founders of the analytics firm Glassnode, announced that the altcoin market has entered a critical juncture. Addressing their followers on the social media platform X, the duo said that Bitcoin $95,971.3He stated that ‘s market dominance has increased and altcoins are at risk of losing their upward momentum.
Bitcoin’s Dominance Suppresses Altcoins
Glassnode founders pointed out that Bitcoin’s dominance has increased to 59%. Bitcoin Dominance (BTC.D) refers to the weight of Bitcoin in the crypto market. Happel and Allemann said, “We observe that altcoins are losing their support levels while Bitcoin’s dominance is increasing. “This shows that BTC is in a strong environment and poses a risk for altcoins.” he said.
In current market conditions, Bitcoin allows investors to take less risk. However, this negatively affects the price performance of altcoins. Altcoin investors may have to reconsider their strategies while monitoring market trends.
Long-Term Bitcoin Holders Are Selling
Glassnode’s analysts point out changes in the behavior of Bitcoin holders. According to the data, long-term holders began to sell their assets. In this process, while short-term investors step in, whales are observed to accumulate silently. Happel and Allemann said, “While long-term holders are exiting the market, miners are maintaining a neutral attitude. Selling pressure is rearranging the game.” he said.
As the Bitcoin price fell below the $100,000 level, altcoins lost value faster. Experts think that this situation may lead to the end of the altcoin season. While investors focus on Bitcoin’s price movements, they state that BTC must ensure price stability for the altcoin market to recover.
Market experts emphasize that Bitcoin’s leadership will continue to shape the overall trends in cryptocurrency markets. If the altcoin season ends, investors are expected to revise their risk management strategies.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
