Bitcoin Gains, Altcoins Under Pressure: What’s Going On?
The escalation of the conflict between Israel and Iran has shaken the global financial market, including the crypto sector.
In the past day, the total crypto market capitalization has fallen by around 6%, from US$3.4 trillion to US$3.2 trillion. This decline was triggered by massive liquidations worth more than US$1 billion.
Bitcoin Remains Resilient Amid Turbulence
Despite the pressure on the crypto market, Bitcoin (BTC) only experienced a decline of around 3.1%. In contrast, altcoins faced more significant losses, causing Bitcoin’s (BTC.D) dominance rate to rise from 63.8% to 64.7%.
This increase reflects investors’ tendency to stick with Bitcoin, which is considered safer, during times of uncertainty.
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What Impact Does It Have on Altcoins?
The increase in Bitcoin’s dominance indicates a flow of capital from altcoins to Bitcoin, which is seen as a more stable asset.
This condition could delay the “altcoin season”, a period when altcoins usually outperform Bitcoin. Some analysts predict that the altcoin season may not occur until late 2025.
Conclusion: Strategy for Waiting for Opportunities for Altcoins
Currently, investors seem to prefer Bitcoin as a safe haven amid global turmoil.
However, the history of the crypto market shows that after a period of Bitcoin dominance, altcoins often experience significant increases.
Investors are advised to remain vigilant, monitor market trends, and look for signs of a shift in capital flows back to altcoins.
