Bitcoin has been the unmistakable driver of the market rally for the past few months, with alts riding along on its coat tails. Sure, there were some fireworks here and there, with a few select coins popping off major gains – most notably Solana chalking up a hefty 442% increase over the past 90 days. Solana-based memecoin $BONK also saw a meteoric rise, and even a few older projects like Chainlink and Avalanche recovered some of their lost ground, as new presales like Galaxy Fox ($GFOX) vastly exceeded expectations.
But if you took a step back and looked at the alts v. $BTC chart, Bitcoin was still crushing alts as a whole by a wide margin. Many leading altcoins, such as Cadano, Uniswap and Polkadot, remained down over 80% from their previous all-time highs, while meme coins, such as $DOGE and Shiba Inu, fared even worse – closer to 90% below their ATHs.
Since the crypto rally began around October 10 of this year, the total crypto market valuation has grown by $590 billion. However, Bitcoin alone accounted for $333 billion, or 56% of all the capital that flowed into the crypto market during that period.
But the tides may be turning – and two big indicators are backing that up. The first and most important signal is a bearish double-top in the Bitcoin dominance chart. Bitcoin Dominance hit a 2-year peak of 55% on December 4 but has entered a steep downtrend since then, signaling that investors are redirecting funds to the altcoin market to diversify their portfolio and amplify gains. The second is the fact that, despite the recent Bitcoin flash crash in the wee hours of Monday morning, several altcoins continued their upward trajectories as if nothing had happened.
These ultra-resilient coins included Avalanche, Celestia, $BNB and Matic, to name just a few. Even Solana experienced only minor backlash, holding the price firmly to the $70 level.
This most recent $BTC pull-back could be a blessing in disguise as it may have kickstarted the much-anticipated altcoin season. Over the past week, altcoins attracted more than $64 billion in capital inflows. This further affirms the stance that altcoin that crypto investors are now allocating 60% of their capital toward altcoins.
In addition, Tether just printed another 1 billion dollars worth of $USDT – one of the most bullish…
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