Bitcoin Dominance Is Still In Its Expansion Phase: Glassnode

Knowledge from earlier crypto market cycles means that Bitcoin (BTC)’s dominance over altcoins will possible hold rising over the subsequent a number of months, in accordance with Glassnode.

In a newly printed report, the blockchain and market intelligence outlined how the main crypto asset’s dominance is shaping up in opposition to the second largest crypto, Ethereum (ETH), in comparison with earlier years.

Ethereum Beating Gold, However Shedding to BTC

When weighed in opposition to gold, Bitcoin has appreciated by 93% this yr, with the previous’s worth per ounce staying comparatively contained below $2000. ETH, in contrast, has solely appreciated by 39%.

Based on Glassnode, whereas each belongings have skilled “comparable magnitude downswings” all year long, upswing intervals have seen extra substantial positive aspects for BTC. Glassnode writes:

“Prior cycles have seen ETH drawdown to depths of over -50% on a relative foundation throughout the bear market restoration section, with the present drawdown reaching -38%.”

Glassnode stated that ETH’s drawdown section versus BTC because the former’s “cycle low” in June 2022 has already continued for 470 days thus far, in comparison with intervals of lower than 400 days in prior cycles.

As of November, Bitcoin dominance has risen from 38% in late 2022 to 53%, whereas Ethereum dominance stands at merely 17%. Market dominance refers to how a lot of the full crypto market cap Bitcoin and Ethereum respectively comprise.

In current weeks, the ETH/BTC worth ratio has fallen to a roughly 15-month low of 0.052. The joy round a possible Bitcoin ETF, alongside a “flight to quality” away from bonds into different belongings, has helped push BTC away from its different crypto rivals.

As a gaggle, altcoins excluding stablecoins have grown 37% this yr, meaningfully trailing BTC. Stablecoins, that are usually backed by non-crypto belongings like fiat currencies, comprise over 9% of crypto’s whole market cap.

When Does Bitcoin Season Finish?

Based on Glassnode’s lead analyst James Verify, the market remains to be “properly and actually in a interval of Bitcoin dominance enlargement.”

“It took up till March 2020 when this began to reverse,” stated Verify relating to the earlier cycle in a current video analysis.

In March 2020, Bitcoin collapsed from $9000 to below $4000 on “Black Thursday,” earlier than later recovering and rallying to over $64,000 over the subsequent 12 months. This rally interval, nonetheless, was accompanied by even better positive aspects for ETH and different altcoins, reminiscent of Dogecoin (DOGE).