Why altcoins are rebounding after Bitcoin halving: Here’s why.

Bitcoin’s dominance has increased to 52% in some sources after the asset tried and failed to surpass the $71,000 level and is currently below $70,000 as of Thursday (March 28).

Altcoins have experienced larger retracements, which is evident in the increasing dominance of BTC. like cryptocurrency According to reports, Ethereum (ETH) and other major altcoins have taken $50 billion from the cryptocurrency’s market cap, falling significantly to less than $2.8 trillion.

While altcoins are hemorrhaging, the Bitcoin halving could reduce the asset’s dominance, according to market observers. One such analyst is Michael van de Poppe. decided A decline in BTC dominance could set a new bullish path for altcoins.

After half-life, #Bitcoin It is likely that dominance will begin to decline significantly.

that much $BTC Since the value of altcoins is very low, interest in purchasing them is high. pic.twitter.com/8eDWKBmGXZ

— Michael van de Poppe (@CryptoMichNL) March 27, 2024

Van de Poppe’s analysis highlights Bitcoin’s role as a leading indicator of the broader cryptocurrency market. Familiar market behavior shows that altcoins tend to bounce after BTC experiences significant growth as retail and venture capital capitalize on its low valuation and potential returns.

According to data from CoinCodex, BTC’s dominance is reaching early 2021 levels. Likewise, Grayscale, in its latest report, showed a market pattern in which altcoins are seeing a rally due to BTC’s increasing dominance. Despite recent BTC price movements, there remains optimism about the potential for new ATH before the upcoming April halving.

Market observers also believe that BTC’s bullish momentum could pressure short-term traders, while the major asset could reach “conservative” prices above $100,000.