Bitcoin (BTC), which made its two-year peak by exceeding 50 percent, does not allow altcoins, how did this affect the price of major coins?
Despite the rapid increase in Bitcoin (BTC), the unresponsive altcoins began to lose strength under the influence of Dominance. The fact that the SEC accepted 13 altcoins as securities in the lawsuit report filed against Coinbase and that large companies announced that they were selling altcoins made this event even more critical. What does the relevant data show? What changes have occurred in major coins that have succumbed to the dominance of BTC?
Leader Does Not Recognize Transition to Altcoins
The FTX crisis, which started in November 2022, brought the exits in cryptocurrencies to the top. At that time, while the cryptocurrency market cap was falling, BTC Dominance was increasing. While BTC, which fell to $ 16,500, continued to dominate the market, transitions to altcoins were observed towards the end of the year.
BTC Dominance, which started 2023 with 39.58 percent, showed a total increase of 26.81 percent, without breaking the upward structure, even though it experienced fluctuations until the current period. Since there is no bull signal on behalf of cryptocurrencies yet, the number of investors who do not keep BTC in their wallets and switch to altcoins has increased with recent events.
Regulators such as the SEC, CTFC have increased their pressure on the crypto industry, turning to altcoins in particular. Announcing that it has filed a lawsuit against Coinbase, the SEC designated 13 altcoins as securities in the report. In addition, there are many popular projects among these altcoins. Investors, who stepped back into altcoins in case of the continuation of their regulatory actions, brought BTC Dominance to the forefront and brought it to 50.14 percent.
Altcoin Market Failed to Dominate Arts
Institutions’ backing away from altcoins and the SEC’s designation of 13 altcoins as securities in its lawsuit against Coinbase brought the altcoin market value (TOTAL2) from $663.23 trillion to $519.77 trillion. It is naturally considered normal for the TOTAL2 to decrease by 25.47 percent in a short time, while the increase in BTC Dominance. But in early 2023 it was the other way around.
At the beginning of the year, TOTAL2 was $432.86 trillion. TOTAL2, which managed to reach $ 663.23 trillion on BTC’s journey from $ 16,500 to $ 30,000, increased by 54.44 percent, especially adding value to major coins. Despite the increase in TOTAL2, Bitcoin Dominance is also on the rise, showing that altcoins are in no way superior.
Effects of Bitcoin (BTC) Impact on Altcoins
Ethereum (ETH), traded at $ 1906 on June 2, succumbed to the increasing dominance of BTC and fell to $ 1730. Although BTC is at $ 26,900, one of the most striking names of the major coins, which is lower than the previous prices, was ETH.
Ripple’s (XRP) upside momentum, leading the SEC lawsuit forward, was blocked by BTC Dominance. XRP, which managed to reach $ 0.56 on June 13, lost strength due to the climb of BTC Dominance and fell to $ 0.48.
Dogecoin (DOGE), which was $0.0697 on June 10, was negatively affected both by the decrease in interest in memecoins and by BTC Dominance. When Elon Musk did not share social media about DOGE, memecoin dropped to $0.0618.
Looking at Avalanche (AVAX), another project most affected by altcoin outflows, the price was $14.83 on June 5th. Due to the increase in Bitcoin Dominance, which has exceeded 50 percent, the popular coin, which shot $ 10.5 months later, is now finding buyers at $ 11.4.
Solana (SOL), which was $ 22.07 on June 4, became one of the most depreciating altcoins with the rise of BTC Dominance. SOL, which is priced at $ 16.05 as of the writing of the news, is watching at a critical support threshold. A possible increase in BTC Dominance could push SOL to even lower levels.
Cardano (ADA), which performed well in the first quarter of 2023, was trading at $0.38 on June 6. The increasing dominance of BTC has shaken ADA, bringing the price as much as 0.26. In fact, ADA, which tested $0.24 months later, created a great danger for its ecosystem.
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