Bitcoin Breaks $100K, Reigniting Altcoin Season Hopes

Bitcoin price broke above $100,000 today, sparking debate over whether this will finally lead to a massive altcoin rally or if Bitcoin dominance will continue to rise.

As reported by CCXV, Bitcoin (BTC) surged 3.5% over the past 24 hours to reach $103,322. This pushes BTC to a 9.66% gain this month and 6.9% in the last week.

On the other hand, Bitcoin dominance dropped 2.5% to 63.69%, marking the first time it’s fallen after two months of consistent increases.

This could signal the end of Bitcoin’s dominance and the beginning of the “Banana Zone,” according to veteran macro investor Raoul Pal.

The "Banana Zone' is a term coined by Pal to describe the steep upward trajectory of altcoins, forming a shape similar to a banana, as investors move their earnings from Bitcoin into other cryptocurrencies, setting off a chain reaction of explosive gains.

However, crypto analyst Mark Harvey believes that Bitcoin dominance might continue to grow due to increasing ETF inflows and institutional preference for Bitcoin, rendering the current dip in dominance a temporary phenomenon.

The new highs for Bitcoin price come as the cryptocurrency recovers from recent lows of $94,197, reached at the beginning of May.

Throughout May, Bitcoin has been trading within a narrow range of $94K–$97K, with the recent surge pushing it to new highs.

The recent surge in Bitcoin price also comes amid rumors of a new Bitcoin ETF being approved by the U.S. Securities and Exchange Commission (SEC).

The DEGI/REVOLUTION (DGEN) ETF, focused on economically developing nations, is set to begin trading on May 12, marking the first time an ETF with a "basket of assets" strategy will be available to U.S. retail investors.

This development could lead to increased institutional interest in Bitcoin, potentially shifting the balance of the crypto market and setting the stage for a strong altcoin season.

The possibility of an altcoin season is further highlighted by the CMC Altcoin Season Index, which currently stands at 41, the highest since February but still far below the altcoin season threshold of 75.

This indicates that while there is increasing interest in altcoins, we are not yet in the midst of a full-blown altcoin season.