Bitcoin Dominance Just Had Its Highest Weekly Close Since April 2021 — Uh Oh. So, Is the Altcoin Party Fizzling?

Bitcoin just had its highest weekly dominance since April 2021 — uh oh. So, is the altcoin party fizzling before the speakers warmed up?

The Bitcoin price may be the hottest topic in the crypto sphere right now, but another crucial indicator is quietly heating up.

As we approach April 2024, Bitcoin (BTC) is not only leading the pack with 51% of the market cap, it’s also rewriting the rules. With titans like MicroStrategy and BlackRock (NYSE:BLK) throwing their weight behind it and a fresh batch of U.S. bitcoin ETFs rolling out, Bitcoin’s dominance is a terrifying trend for altcoin holders.

Bitcoin just had its highest weekly dominance since April 2021.

Do you think BTC will continue to outperform after the halving?

— Satoshi Stacker (@StackerSatoshi) April 8, 2024

In contrast, Ethereum’s (CRYPTO: ETH) share of the market dominance pie has decreased, dropping to 16.84%.

This pivot isn't just a blip on the radar—it’s the tectonic shift reshaping the crypto landscape.

What Is Bitcoin Dominance Chart And How Will It Affect Crypto?

So, if you’re wondering, “What’s Bitcoin Dominance?” Imagine it as the crypto world’s pulse check. High Bitcoin dominance is like saying there’s less confidence in altcoins’ performance, such as Ethereum, Solana (CRYPTO: SOL), and meme coins.

Now, picture this: the market’s mood swings and bearish divergences from technical indicators like the MACD (Moving average convergence/divergence) and RSI, Bitcoin strutting into a bullish trend despite the optimism, especially with the Halving one week away.

Analysts like Kiana Moghaddem caution that while Bitcoin is heating up, it’s still heating up in unpredictable ways.

In 2020, the bull run did not kick off on the Halving Day. Just a day after the Halving, Bitcoin plummeted by -40%.

After the Halving, the Fear and Greed Index indicates a "sell the news" phase before any bull run.

What This Means For Your Altcoin Portfolio

The launch of Spot Bitcoin ETFs in January didn’t just put a stamp of legitimacy on crypto investments; it lit the afterburners for Bitcoin’s price and market throne. Sure, we’re not planting our flag solely in Bitcoin territory—despite what our name 99Bitcoins might suggest—but let’s call it like it is: this move is stirring up an already tempestuous bull market with a fresh dose of chaos.

Because of these spot ETFs, the Bitcoin Dominance chart will be everything.

Hong Kong Poised To Approve Spot ETFs For Both Bitcoin And Ethereum As Soon as Monday: BBG

— Tree News (@TreeNewsFeed) April 12, 2024

Recently, JPMorgan announced that the approval chances of an Ethereum spot ETF in May are not greater than 50%. As a result, altcoins might crash until next month. However, regardless of whether the altcoin season starts in April or May, here are some tokens that you might want to consider.

Bottom Line - Bitcoin Dominance Chart Takeaways

If you’re navigating the crypto waters, your map is the Bitcoin dominance chart. A surge in Bitcoin’s market dominance will tell you a bear or bull market is approaching (or that we’ve hit entirely new waters thanks to spot ETFs). Conversely, a decline in dominance often means an impending altcoin fiesta.

Altcoins are still some of the most exciting projects in cryptocurrency, so don’t let Bitcoin Dominance scare you. But it’s essential to realize this chart will play a pivotal role over the next month.