Bitcoin (BTC) faces fresh competition from altcoins this month as data shows that – technically – it is indeed an “alternate season”.
Figures from CoinMarketCap and TradingView show that BTC currently makes up around 41% of the total cryptocurrency market capitalization – its lowest level since the start of 2022.
Bitcoin throws ingenuity cap market
After suffering at the hands of Terra LUNA – now renamed Terra Classic (LUNC) – the altcoin markets have skyrocketed in recent months.
Along with Bitcoin’s return from 18-month lows of $17,600 in June, altcoins have enjoyed their own renaissance, with one coin now giving Bitcoin bulls a run for their money.
According to CoinMarketCap, Bitcoin’s market share is now at its lowest since mid-January, with the largest altcoin Ether (ETH), in particular, stealing the spotlight in recent weeks.
From its low of 14.3% on June 19, Ethereum’s market dominance is now at 19%.
Candlestick chart for the week Bitcoin market cap dominates the Bitcoin market. Source: TradingView
The case for altcoin betting is further boosted by a custom metric charged with calling an “altseason” — a period in which altcoins outperform Bitcoin as investments.
With a benchmark score of 94/100, the Altcoin Season Index is currently releasing its most convincing reading since June 2021.
The closer the score is to zero, the more the scale favors bitcoin over altcoins. Alternate season was once called “75% of the top 50 coins performed better than bitcoin over the past season,” his description explains, adding that a “season” is equivalent to the past 90 days.
Altcoin season indicator (screenshot). Source: Blockchaincenter.
Bitfinex ETH long bets collapse to May lows
Meanwhile, the controversy over the upcoming consolidation event has meant that ETH’s performance is similarly unconvincing on the shorter time frames this week.
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In the 24 hours to writing on August 9, ETH/USD is down around 7%, while BTC/USD is down $1,000 in today’s hours.
Analysts including Cointelegraph contributor Michael van de Poppe said the nerves that prevailed in the US consumer price index on August 10 contributed to the decline.
Meanwhile, on-chain screens indicated that one of the major players on the Bitfinex exchange has significantly reduced its long exposure to ETH, indicating the belief that the downside will be guaranteed after that.
At the time of writing, long positions were at their lowest levels just before the Terra Incident in May.
ETH/USD 1-day candlestick chart (Bitfinex). Source: TradingView
However, Van de Poppe called for restrictions when it comes to the upcoming ETH price movement.
“People already set $300 or $600 targets for Ethereum on the first slight correction,” he wrote on Twitter.