Bitcoin (BTC) faces new competition from altcoins this month, as data shows that – technically – it is already “altcoin season.”
Figures from CoinMarketCap and TradingView show that BTC currently represents about 41% of the overall cryptocurrency market capitalization – the lowest level since the beginning of 2022.
Bitcoin loses its luster in terms of market capitalization
After suffering from the collapse of Terra LUNA, renamed Terra Classic (LUC), altcoin markets have made a significant comeback in recent months.
In addition to bitcoin’s comeback from the 18-month low ($17,600 in June), altcoins have had their own revival, which is now giving bitcoin investors a hard time.
According to CoinMarketCap, bitcoin’s market cap share is now at its lowest level since mid-January, with the larger altcoin Ether (ETH), in particular, stealing the show in recent weeks.
After hitting a low of 14.3% on June 19, Ethereum now dominates the market by 19%.
The case for altcoin betting is further strengthened by a dedicated metric tasked with analyzing the “altseason” – a period when altcoins outperform bitcoin as investments.
With a normalized score of 94/100, theAltcoin Season Index he currently has the most impressive reading of the offseason since June 2021.
The closer the score is to zero, the more the metric favors bitcoin over altcoins. The altcoin season opens once “75% of the top 50 bitcoin coins performed last season,” the report says, adding that a “season” is equal to the last 90 days.
Bitfinex ETH Long Bets Crash to May Low
The controversy surrounding the upcoming Merge event, meanwhile, has seen ETH perform similarly uncertainly on short time frames this week.
Also read: What is forking? ETHW Ethereum token, which could be imposed, is trading for less than $100
In the 24 hours before writing this article, on August 9, the ETH/USD pair lost almost 7%, and the BTC/USD pair lost $1,000 within hours.
Nervousness over the August 10 US consumer price index (CPI) reading added to the decline, supported analysts, including Michaël van de Poppe, Cointelegraph contributor.
A whale of 300.000 long positions was closed on Bitfinex
— Maartun (@JA_Maartun) August 8, 2022
The whale closed 300,000 long positions on Bitfinex. Let’s see why it’s important and what it can mean for the market #Bitcoin #Ethereum #Cryptocurrency #Bitfinex #Futures pic.twitter.com/oiAotLM1Ll — Maartunn (@JA_Maartun) August 8, 2022
Chain watchers, meanwhile, noted that major exchange Bitfinex had significantly reduced its long exposure to ETH, indicating that the fall was almost certain.
At the time of writing, long positions were at the same level as they were before the Terra incident in May.
However, Van de Poppe insisted on restraint regarding the upcoming ETH price action.
“People are already posting $300 or $600 targets for Ethereum at the first small correction,” he said. tweeted.
“There is no need for this, despite the fact that people are strongly influenced by their bias. Because of this bias, they will not be able to look at the markets objectively. »
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