Matrixport stated yesterday that the current market dominance of Bitcoin is still high, indicating that this bull market may still be in its early stages and could potentially trigger a large-scale outbreak of altcoins.
(Bitcoin market dominance “soars to 57%” to a three-year high, can we determine that the bull market is still in its early stages?)
Bitcoin experienced a sharp drop of 15% over the weekend due to escalating tensions in the Middle East, falling briefly to $60,660. This also caused a larger-scale plunge in altcoins. The market saw tokens with more than 50% retracement, but some analysts speculate that this may be the eve of an altcoin outbreak.
Matrixport: Limited growth potential for altcoins
Cryptocurrency management platform Matrixport expressed its viewpoint in a post yesterday, stating that based on Bitcoin’s current market dominance (53.9%), this bull market is still in its early stages and the growth potential for altcoins remains limited. According to historical experience, during the bull market in 2021, the majority of altcoins will see larger gains than Bitcoin, leading to a decline in BTC.D. At that time, BTC.D mostly fluctuated between 40% and 48%, and the current level above 53% suggests the strength of Bitcoin. Matrixport also suggests that the anticipated altcoin outbreak in this bull market may be hindered or affected by Bitcoin.
Glassnode: Historical trends show it’s still early for Bitcoin’s crazy bull market
In addition, cryptocurrency data analysis company Glassnode also stated in a post over the weekend that after Bitcoin broke its all-time high in history, its price has experienced multiple pullbacks of over 10% and even plunges of over 25%. In the current cycle (black line) since Bitcoin surpassed its historical high in March, there have only been two instances of more than 10% drops.
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