Bitcoin exceeded $80,000, but its market share dropped? Is the real 'altcoin season' coming?

▲ Cryptocurrency ©

Bitcoin (BTC) recently broke above the $81,000 mark, showing a strong upward trend, while Bitcoin's dominance, which signifies its market share, has turned downwards, signaling the beginning of a full-fledged 'altcoin season'.

According to the cryptocurrency media outlet Bitcoinist on May 10 (local time), Bitcoin dominance has recently been declining, giving back the gains it surged to 60% earlier this year. This suggests that funds, which were concentrated due to Bitcoin spot ETF inflows and institutional accumulation, have started to circulate into altcoins. In particular, a 'trend of increasing altcoin trading volume' has been observed, with 30-day altcoin trading volume surpassing the 365-day average, making the movement of funds visible.

The market is already showing differentiated movements by asset. While Ethereum (ETH) maintained a stable price, Sui (SUI) surged by 15.83% and Solana (SOL) by 10.53% in a week, monopolizing market attention. Experts analyzed the dead cross (bearish crossover) of the Moving Average Convergence Divergence (MACD) that occurred in the Bitcoin dominance chart as a significant signal indicating a change in the market structure itself, beyond being a mere technical indicator.

On-chain indicators show that the overall market is still in the early stages of a bull cycle. The Market Value to Realized Value (MVRV) ratio has not reached the peaks of past cycles, and selling pressure from long-term holders also remains low. This suggests that the decline in Bitcoin's market share is not a market collapse, but rather an entry into the next upward phase that expands the overall market pie.

In the past, during 2017 and 2021, a decline in Bitcoin dominance also acted as an inflection point leading to an explosive altcoin rally. If the dominance continues to decline this time, the liquidity concentrated in Bitcoin is expected to spread throughout altcoins, further heating up the market. The total market capitalization of the altcoin market is currently estimated to be approximately $1.04 trillion.

As of the time of writing, Bitcoin continues to trade around the $80,724 mark. If Bitcoin maintains its price while dominance continues to fall, a true altcoin season, where previously overlooked altcoins record historic returns, could become a reality, raising investors' expectations.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*