Bitcoin’s market dominance may have reached a ceiling, according to analysts, as Ethereum (ETH) continues to show strong performance against the top cryptocurrency. As investor attention shifts toward altcoins and Ethereum’s uptrend solidifies, many believe Bitcoin may temporarily lose its edge in market share.
Crypto analyst Matthew Hyland took to X (formerly Twitter) on Tuesday to share his bold outlook, stating, “If ETH breaks bullish and remains bullish against BTC, there is a 99% chance BTC Dominance has topped.”
Ethereum’s Uptrend Threatens Bitcoin Dominance
Bitcoin dominance — a measure of BTC’s share of the total cryptocurrency market capitalization — currently stands at 63.82%, according to TradingView. While it has risen nearly 10% year-to-date, the past month has shown signs of weakening, with dominance falling 1.35% in 30 days and 1.85% over the past week.
This shift is largely attributed to rising capital inflows into Ethereum and other altcoins. ETH is up nearly 20% over the last 7 days, and currently trades around $3,117, according to CoinMarketCap. The growing interest in Ethereum has caused traders to question whether the long-standing dominance of Bitcoin in the crypto market is now under threat.
Bull Flag Formation Signals Breakout for ETH
Technical analysts are paying close attention to Ethereum’s price action. According to trader Cas Abbe, ETH is forming a clear bull flag, a chart pattern often followed by a breakout. “It’s getting closer to a breakout,” Abbe noted.
If Ethereum breaks above key resistance levels and continues to outperform Bitcoin, it would reinforce the claim that BTC dominance has peaked. Analyst Hyland stressed that “it’s basically impossible for [BTC] dominance to push higher if ETH continues higher against BTC.”
Bitcoin May Cool Off Before Year-End Rally
Despite the attention on Ethereum, many analysts remain optimistic about Bitcoin’s long-term trajectory. Charles Edwards, founder of Capriole Investments, told Cointelegraph that he expects a period of short-term consolidation for BTC after reaching a recent high of $122,884.
“I see some consolidation here after the big move, but ultimately higher into year end,” Edwards said, suggesting that Bitcoin’s bull run is not yet over, but that altcoins — particularly Ethereum — may lead in the short term.
Strong Fundamentals Still Support Bitcoin
While the Bitcoin Moving Average Indicator on TradingView currently signals a “Strong Sell,” many experts disagree with that bearish interpretation.
Matt Mena, a crypto research strategist at 21Shares, told Cointelegraph that Bitcoin is not entering a downtrend anytime soon. “The fundamentals remain strong,” Mena said, citing increasing institutional demand and the potential for interest rate cuts in the U.S. that could stimulate the crypto market as a whole.
Altcoin Season on the Horizon?
Traditionally, when Bitcoin dominance falls, it signals growing interest in altcoins. Ethereum, often viewed as the leading altcoin, typically leads the charge during such phases.
This pattern appears to be playing out now, as investor funds shift from BTC into ETH and other alternative cryptocurrencies. Market watchers are pointing to Ethereum’s strength, rising DeFi usage, and the recent start of Ethereum ETFs in several jurisdictions as drivers of its renewed momentum.
Crypto trader Ash Crypto echoed this sentiment, saying on social media that the recent dip in BTC dominance is “due to money flowing into ETH and altcoins.”
Bitcoin Dominance Outlook: Key Takeaways
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Bitcoin dominance currently sits at 63.82%, up for the year but down in recent weeks.
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Ethereum’s price is up 19.87% in the past 7 days, threatening BTC’s market share.
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Matthew Hyland says there’s a “99% chance” BTC dominance has peaked if ETH remains strong.
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Analysts expect Bitcoin to consolidate short term but maintain a bullish longer-term trend.
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Technical charts show ETH forming a bull flag, suggesting an imminent breakout.
Conclusion: Is Bitcoin Dominance Topping Out?
With Ethereum gathering momentum and traders shifting focus to altcoins, Bitcoin dominance may have reached its peak — at least for now. If ETH continues its uptrend, the broader crypto market could see a rotation into altcoins, a hallmark of what’s often referred to as altcoin season.
Still, Bitcoin’s fundamentals remain intact, and many expect the top cryptocurrency to resume its climb later in the year. Until then, all eyes are on Ethereum as it tests the strength of Bitcoin’s hold on the market.
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