Why Are Altcoins Down as Bitcoin Dominance Hits New High

Altcoins are experiencing a downturn, and it's no surprise given the recent surge in Bitcoin's dominance. Bitcoin's market share has hit a new high, with 70% of the market capitalization controlled by the largest cryptocurrency.

This shift in dominance has led to a decline in altcoin prices, as investors flock to the safety of Bitcoin. The price of altcoins has dropped by 20% in the past month alone, with some coins experiencing even greater losses.

The increased demand for Bitcoin has also led to a decrease in liquidity for altcoins, making it harder for investors to buy and sell. This reduced liquidity has further exacerbated the decline in altcoin prices.

Several leading altcoins are facing significant price drops, with XRP falling to a daily low of $2.04 after hitting $2.15, but has since rebounded to $2.06.

The Relative Strength Index (RSI) for XRP reads 45.56, indicating that the bears have taken over and the current price correction will continue in the near future.

The decline of XRP is not an isolated incident, as other altcoins have also seen significant drops. ADA is down 2.03%, trading at $0.8694, while ONDO has fallen 4.92% to $1.38.

Dogecoin (DOGE) has dropped 1.86% and is priced at $0.3206, and Stellar (XLM) has plummeted 4.56% to $0.3365.

Here are some of the altcoins experiencing significant declines:

These altcoins appear to be continuing their downtrend in the short term, making it a challenging time for investors.

Ethereum's recent 10% drop since the end of May is a big deal, as it often leads altcoin markets.

Uncertainty around Ethereum exchange-traded funds (ETFs) is also weighing on altcoins. These ETFs have been approved but haven't been listed for trading yet.

Spot ETH ETFs could launch soon, potentially giving altcoins a big boost. If this happens, ETH will be considered a commodity instead of a security.

U.S. economic data and persistently high inflation are another factor holding back altcoins. This is because altcoins tend to do well during periods of quantitative easing and low interest rates.

Here are some specific altcoins that have seen significant price drops:

The Relative Strength Index (RSI) for XRP reads 45.56, indicating that the bears have taken over and the current price correction will continue in the near future.

The cryptocurrency market is reflecting cautious participation, with Bitcoin and Ethereum anchoring the market.

Major altcoins like Solana and Dogecoin are moving in response to the overall sentiment, but some are experiencing a decline.

TRON, on the other hand, is stable, while XRP and Avalanche are experiencing a more drastic decline.

Binance Coin (BNB) is trading at a loss, down 2.59% to $695. This decline reflects the cautious attitude in the market.

Its trading volume stood at $1.67 billion, indicating a significant amount of activity. The market capitalization of BNB is $100.99 billion, a substantial figure that underscores its importance in the cryptocurrency landscape.

The bearish sentiment surrounding BNB is a cause for concern, as it remains under pressure to recover lost gains. This pressure is likely to continue until the market sentiment shifts in favor of the coin.

Bitcoin has commanded more than 50% of the total cryptocurrency market cap in recent weeks.

The U.S. Securities and Exchange Commission (SEC) delayed any announcement of a decision regarding the approval of a cryptocurrency exchange-traded fund (ETF) until the end of September, causing a stir in the crypto space.

This announcement had a significant impact on Ethereum and other altcoins, causing investors to sell off digital currencies.

Ethereum dipped to its lowest price in about a year, falling below $300.

Bitcoin, however, was able to hold its value better than other coins, showing its resilience in the market.

The cryptocurrency market is currently dominated by Bitcoin, with a high of 55.4% market dominance, according to Tradingview.

This high dominance is a big factor in the current market trends, and some experts believe it won't stay this way for long.

The Ethereum ETF is set to be listed soon, which could lead to a rotation in the market, potentially making Bitcoin dominance decrease.

In the past two cycles, altcoins have peaked exactly 546 days after halving, which could be a sign that the current decline is not over yet.

Total market cap has remained flat over the weekend at $2.54 trillion, according to CoinGecko.

Bitcoin's stability is a topic of interest, especially during market fluctuations. One reason for its resilience is that investors view BTC as the most stable digital token at the moment.

Investors are cautious about newer, smaller cryptocurrencies and may transfer their funds to bitcoin instead. This could be a reason for bitcoin's relatively stable position.

High levels of volatility in BTC are still present, but its established status makes it a more attractive option for some investors.

BTC dominance is currently high at 55.4% and has been increasing since December, according to Tradingview. This is a significant factor to consider in the current market.

The Ethereum ETF is expected to be listed in the upcoming weeks, which could lead to a rotation in the market and a decrease in Bitcoin dominance. This is a possibility that traders are keeping an eye on.

In the past two cycles, altcoins peaked exactly 546 days post-halving, according to a post on X by crypto trader 'cyclop'. This is a trend that investors are paying attention to.

The total market cap has remained flat over the weekend at $2.54 trillion, according to CoinGecko. This stability is a sign that investors are holding back on making big moves.

Bitcoin remains within its range-bound channel, but most altcoins continue to decline. This is a sign that investors are favoring Bitcoin over other cryptocurrencies.