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Why are altcoins quiet as Bitcoin takes off?

When might the altcoin rally that crypto investors have been waiting for begin?

Bitcoin is approaching its all-time high. However, since March, the altcoin’s market value has been trending downwards. So when will the altcoin market recover? Crypto analyst Crypto Banter answered this question with market dominance figures for both USDT and Bitcoin, which indicate when the altcoin rally will begin.

Bitcoin is the dominant altcoin.
BTC Market Domination (BTC.D)

The future of the altcoin market

Daily transaction volume has started to pick up, but the market must cross the $50 to $60 million mark to sustain this momentum, crypto banter says. However, big investors are currently being cautious ahead of the upcoming US elections.

When the uncertainty fades, investors who hold cash are expected to return to the market. This could reduce USDT dominance (USDT.D). The analyst believes that if USDT.D falls to around 3%, it could signal more money entering the markets and pave the way for the start of a major rally.

Tether altcoin dominance
USDT market dominance

The Significance of Bitcoin’s Dominance Cycle

It has been described that the dominance of Bitcoin (BTC.D) follows a cycle, in which Bitcoin’s market share rises and falls, creating opportunities for cryptocurrencies to grow. Stating that BTC.D is currently at its peak, Banter said: Bitcoin It predicts that its dominance may decrease in the next 300-350 days and the process may be completed around August 2025. If this trend continues, altcoins could experience a massive rally as money flows from Bitcoin to other cryptocurrencies.

Time your altcoin investment right.

The analyst notes that the total market cap of altcoins (excluding Bitcoin) forms a “collapsing wedge.” Historically, this pattern is more likely to break to the upside. If the current trend is consistent with past movements, the Altcoin market price could reach new highs.

Crypto banter emphasizes that many investors miss the start of the altcoin season and try to invest after the price spikes. The analyst suggests that now may be a good time to accumulate cryptocurrencies, especially those that are performing well against Bitcoin.

Tuna Kaya: “48% is the critical level”

Bitcoin’s dominance exceeded 57 percent with net inflows from spot ETFs, analyst Tona Kaya said. Analysts consider this level significant and think that as long as it remains above it, a rise of 64% is possible. He believes that if the dominance falls below 57 percent, the market will recover. The level that Kaya considers critical for an altcoin rally is 48%, below this level, an altcoin rally can begin.

This article does not contain investment advice or recommendations. Every investment and trading venture involves risk, and readers should do their own research when making decisions.

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