The resurgence in bitcoin price in the last 24-hours has seen the leading cryptocurrency revisit the $9500 mark for the first time in close to a month. However, that upward move wasn’t enough to save Bitcoin’s dominance level from hitting a new yearly low of 61.4% at the time of writing this report.
Bitcoin’s dominance is a metric that compare’s the cryptocurrency’s market cap against that of altcoins and offers a basis for measuring investor sentiment. A decline in dominance, as shown in the chart below, highlights the growing investor appetite for altcoins in recent weeks.
The last time that Bitcoin’s dominance hit the 61.4% level was in early July 2019. Since then, it had climbed as high as 69.9% in September before setting out on the path leading up to the current yearly lows.
Altseason Plot Thickens
The drop in bitcoin dominance can easily be attributed to the surge in the value of altcoins, especially those in the DeFi sector within the last few weeks. VeChain (VET), Cardano (ADA), Chainlink (LINK), and DeFi coins like Compound (COMP) and Balancer (BAL) have all printed new yearly highs, and in some cases, hit new all-time highs.
In the same manner, Ether (ETH), recorded an impressive %10 leap as Bitcoin moved above $9500 following news that U.S banks can now offer cryptocurrency custody services. ETH has continued to trade above $260 with a market cap of $29.4 billion
Whether the altcoin rally will continue for long is a question that only time will answer. However, Bitcoin holders will actively be hoping the cryptocurrency’s volatility in the last 24-hour will spark a move in the right direction, following a long period when the price was locked between $9000-$9200.
At the time of writing, the Bitcoin market cap hovered just above $175 billion. The total market cap of all cryptocurrencies was $284.6 billion.