Because Bitcoin’s price and volume rise together is bad news for Ethereum, altseason


Bitcoin (BTC) is sucking volume out of the entire cryptocurrency market as it continues to grow. This is causing a pullback in the alternative cryptocurrency (altcoin) market, which has seen increased selling pressure and low demand from buyers.

On October 30, Santiment researchers spotted Bitcoin’s growing volume and dominance, while Chainlink (LINK), Ether (ETH) and Binance Coin (BNB) struggled. They he wrote:

“The domain involving #Bitcoin continues to manifest itself, particularly via trading volume. When comparing other major blockchains on the last day, notice the drop in trading volume of $ ETH, $ XRP, $ LINK and $ BNB, while BTC levels remained high “.

At least in the foreseeable future, traders believe the so-called “altseason” is not coming back, especially as Bitcoin outperforms altcoins.

The trading volume of Bitcoin compared to other major cryptocurrencies. Source: Santiment

When would altcoins recover?

Historically, during bull markets, the cryptocurrency market first saw Bitcoin experience a rapid uptrend. Then, altcoins followed, after BTC reached a local high or an all-time high.

Traders are expecting a similar trend in the current price cycle, generally expecting altcoins to recover in 2021. But until BTC stabilizes and completes its rally, traders don’t see a real bullish trend in altcoins. .

From the lows of September 13, the Bitcoin dominance index rose from 56% to 63.4%, registering a 7.4% increase within two months.

The Bitcoin dominance index. Source:

However, Michael van de Poppe, a full-time trader on the Amsterdam Stock Exchange, said an altseason is possible in the first quarter of 2021. He She said:

“Domination has hit the red zone here. I am still waiting until December for a superior property on this one. After that -> Fourth 1 altseason “.

The problem with altcoins is the current dynamics of the cryptocurrency market. When Bitcoin rises rapidly, the altcoins decrease as the capital returns to BTC. If BTC falls, altcoins fall in tandem, putting the altcoins in a precarious position.