While the leading cryptocurrency Bitcoin is approaching $70,000 in just days, altcoins are not performing as expected.
However, it seems that altcoins will not be able to start the expected rally for a while.
Cryptocurrency service provider Matrixport said that the altcoin rally season has been delayed due to Bitcoin's 58% dominance.
In his post from his Matrixport X account, he stated that Bitcoin dominance remains strong at 58%, which shows that the altcoin season has not started yet and has been postponed a little further.
Matrixport analysts said market and investor interest remains focused on Bitcoin despite the existence of over 20,000 cryptocurrencies.
Analysts say that while there have been significant capital inflows into spot Bitcoin ETFs, the impact on altcoins has been minimal, suggesting that retail investors have yet to enter the market on a large scale.
Since retail investors did not come to the market, the altcoin rally season did not start.
As investors eagerly await the start of the altcoin season, Matrixport analysts noted that Bitcoin has the potential to increase its dominance even further as trading volumes have experienced significant growth.
“Bitcoin’s dominance continues to grow and has reached 58%, indicating that the alt season has not yet started and may be delayed.Despite the launch of over 20,000 cryptocurrencies, the focus is firmly on Bitcoin.Trading volumes in Bitcoin are set to double from $10-20 billion to $20-40 billion in 2023, underscoring Bitcoin's growing influence.”