Bitcoin Dominance is Bleeding With Price, But Market Observers Say Altcoin Season is on Hold

Bitcoin's recent decline in price and dominance rate indicates a broader market deleveraging rather than a straightforward rotation into altcoins. While Bitcoin has dropped nearly 16% this month, its dominance has slipped from 61.4% to 58.9%. Despite speculation about an upcoming 'altcoin season', many analysts caution that the current market conditions do not suggest a robust shift towards altcoins, as most have also suffered losses. The ongoing deleveraging cycle is attributed to a flush of leverage that started with October’s liquidation, rather than a bullish signal for altcoins. On-chain metrics indicate steady activity without the spikes in fees typical of an altcoin cycle. Until Bitcoin and Ethereum stabilize within a firmer range, the market remains poised for sideways movement rather than an explosive altseason, as traders exhibit caution by reducing their exposure rather than heavily investing in riskier assets.

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