Bitcoin Halving Impact Fades as Demand Takes Center Stage
According to reports, the Open Interest in Bitcoin is now 30 times higher than it was 11 days before the 2020 Bitcoin halving.
Bitcoin’s dominance has dipped, indicating that the industry might be heading into an extended altcoin season (“alt season”).
According to data from metrics like Coingecko, Coin360, and TradingView, Bitcoin is only making up 39% of the overall cryptocurrency market cap at the time of writing. This marks the lowest it has seen since the beginning of the year, and means the market is currently in alt season.
Source: Coin360
Bitcoin price
While Bitcoin is looking at stronger figures than it has in the past couple of months, the altcoin market has seen a massive rally, with Ethereum locking in a nearly 20% market cap dominance – just half of that of Bitcoin. This is the lowest market cap share that Bitcoin has seen since the middle of January 2022 and Ethereum’s dominance has grown by over 5% in the past six months.
Currently, Bitcoin is trading at just under $23,000 USD – which is a decline of 3.8% in the past 24 hours, but a tidy 9.9% gain in the past 30 days. Overall, the market is looking like it might be in a rally after months of dipped trading values.
Looking at the chart below from TradingView, the dominance of Bitcoin over the past week has slipped even further.
The rise of Altcoin Season
Looking at Ethereum, in the past 24 hours, it has shed 5.1%. However, in the past 30 days, it has gained a staggering 43.7%, over four times the gain Bitcoin has seen in the past month. Ripple’s XRP has seen an increase of 11.2% in the past 30 days, Cardano has gained 10.2% over the last month, and Solana has gained 7.7%.
According to crypto dominance tracker, the Altcoin Season Index, it is “Currently Altcoin Season!” with a current 96/100 score. This indicates that there is a major altcoin dominance in the cryptocurrency market cap and trading volumes. It means that 75% of the top 50 coins have outperformed Bitcoin in the past 90 days, excluding stablecoins and exchange-backed tokens.
Source: Blockchain Center