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Bitcoin dominance (BTC.D) reached 61.52%, remaining above 60% for more than a month and hitting the highest level since March 2021. This indicates that investors prefer Bitcoin as the leading asset, leaving behind weakening altcoins. A risk-off sentiment seems to dominate the market, driven by global economic uncertainty, interest rate policies, and strict regulations on crypto assets other than Bitcoin. If this dominance continues to rise, the market could remain in defensive mode, with Bitcoin as the primary choice for investors avoiding risk.
However, the surge in Bitcoin dominance could also be an early sign of a new cycle. History shows that after Bitcoin strengthens, capital often rotates into altcoins, creating significant growth opportunities. Innovations in the DeFi sector, Layer 2, and AI crypto could trigger the resurgence of altcoins in the coming months. If Bitcoin starts to show consolidation, the next phase could be an altcoin season, where smaller assets regain the market's attention. Is it time to hold onto Bitcoin, or is it time to prepare for the next wave of altcoins?
#BitcoinDominanceRemainsHigh