This month, Bitcoin (BTC) is facing new competition from altcoins, as data suggests that – technically — it is already “alt season.” BTC now accounts for 41% of the total crypto market cap, its lowest market share since January. According to CoinMarketCap and TradingView data, BTC currently accounts for roughly 41% of total crypto market capitalization – its lowest since the beginning of 2022.
Bitcoin Sheds Market Cap Prowess
Following the collapse of Terra LUNA — now renamed Terra Classic (LUNC) — altcoin markets have risen significantly in recent months. Along with Bitcoin’s recovery from 18-month lows of $17,600 in June, altcoins have seen a rebirth of their own, now giving Bitcoin bulls a run for their money. According to CoinMarketCap, Bitcoin’s market cap share has dropped to its lowest level since mid-January, with the largest altcoin, Ether (ETH), stealing the show in recent weeks.
Ethereum’s market cap domination has increased from 14.3% in June to 19%. The case for altcoin bets is supported further by a specialized statistic charged with identifying “alt season” – a period in which altcoins outperform Bitcoin as investments. The Altcoin Season Index shows its most compelling alt season reading since June 2021, with a normalized score of 94/100. The closer the score is to zero, the more Bitcoin the statistic favors over altcoins. “75% of the Top 50 coins did better than Bitcoin over the last season,” its description says, noting that a “season” translates to the previous 90 days.
Bitfinex ETH Long Bets Crash to May Lows
Meanwhile, the controversy around the imminent Merge event ensured that ETH behaved similarly unconvincingly over short timescales this week. In the 24 hours following the writing on August 9, ETH/USD had dropped over 7%, while BTC/USD had lost $1,000 in hours. Analysts, like Cointelegraph contributor Michael van de Poppe, stated that nervousness about the August 10 US Consumer Price Index (CPI) readout contributed to the drop.
Meanwhile, on-chain monitors reported that a significant participant on the exchange Bitfinex had drastically cut their long ETH exposure, indicating a concern that further fall was almost certain. Longs were at the same lows as before the Terra event in May at the time of writing. Van de Poppe did warn for caution in terms of potential ETH price action.
Van de Poppe tweeted, “People already flashing targets of $300 or $600 for Ethereum on the first slight correction.”
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