Bitcoin’s Market Dominance Surges: What’s Next for Crypto?

Bitcoin dominance has surged to a 42-month high of 59% as the price of BTC pumped to $68,000, signaling a shift in market sentiment. If Bitcoin rallies further toward the $80k-$90k range in the next 30 days, its dominance could jump to 61%. This indicates that BTC may outperform altcoins in the short term, as investors gravitate towards the leading cryptocurrency during its bullish run. Historically, such periods of heightened BTC dominance have often preceded significant Bitcoin rallies, with altcoins catching up afterward.

This means that while Bitcoin may give a substantial rally and outperform altcoins for a few weeks, the tables could turn once Bitcoin breaks its all-time high (ATH) and begins a strong uptrend. A similar pattern was observed in the last cycle, where Bitcoin broke the $19,500 level on December 16, 2020, and Bitcoin dominance peaked 18 days later, on January 3, 2021. This was followed by a mega alt season, where altcoins significantly outperformed. So, while BTC might dominate the spotlight in the short term, altcoins could offer lucrative opportunities once BTC’s initial rally stabilises.

The chart above illustrates the 2021 bull run and how altcoins responded once BTC dominance peaked (BTC.D vs Total2). When Bitcoin dominance reaches its peak, money typically rotates into altcoins, marking the true start of altcoin season. However, this doesn’t mean that Bitcoin stalls—BTC will likely continue to rally and hit higher prices, though altcoins will start to outperform. Since BTC dominance hasn't peaked yet, alt season remains on hold. If we expect BTC dominance to peak within the next couple of months, we could see altcoin season peak in late 2025, offering nearly a year of an exciting alt season ahead.

This is why we have consistently recommended holding primarily BTC in your portfolio, as we expect its dominance to persist. However, this period can also serve as preparation time to allocate to altcoins. The Stormrake Spotlight continues to highlight key altcoins that we are bullish about for this bull run.

If you're concerned about missing out, don’t be. It's not too late (YOU ARE STILL EARLY). If you have long-term conviction in the crypto space, now remains a great time to enter. Contact your Stormrake Crypto Broker to take advantage of these golden opportunities.

Stormrake Spotlight: SUI ($2.03)

Despite a short-term pullback after reaching a new all-time high, SUI remains one of the top coins in the crypto industry. It continues to show bullish potential in both the short and long term. These dips should be viewed as buying opportunities for investors. Our upcoming Thunder Trading article, set to be released later today, will cover SUI and its potential in this bull run. Be sure not to miss it!

BTC/USD Key Levels and Price Action:

We are approaching the first short-term test of Bitcoin in this current rally. BTC has pulled back and is now trading just above the key level of $66,800 and the 55 EMA. Bitcoin needs to bounce from this region to maintain its short-term uptrend and avoid the potential bearish cross of the 21 and 55 EMAs. If BTC holds this level, we can expect a move up to $69k (CPR resistance). However, if it breaks below this key level, the 200 moving average around $65k should provide support.

BTC Total ETF Flows for 17 Oct: $ +45.7 million (16 October saw an inflow of $458.5 million)

ETH/USD Key Levels and Price Action:

Ethereum’s situation is slightly more concerning than Bitcoin's, as it is currently trading below both its 21 and 55 EMAs. However, no bearish cross has occurred yet, and we remain above the key level of $2,556. While there’s no immediate signal of a bearish trend flip, there are potential warning signs on the horizon.

ETH Total ETF Flows for 17 Oct: $ - 9.1 million (16 October saw an inflow of $24.2 million)

Written by Alexandar Artis

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