Bitcoin Dominance Decline Sparks Altcoin Season Speculation

According to Cointelegraph, recent fluctuations in Bitcoin's market dominance may indicate an impending altcoin season, as suggested by crypto analyst Matthew Hyland. Hyland noted that the Bitcoin Dominance chart has appeared bearish for several weeks, suggesting a continuation of the downtrend. He described the recent relief rally as a 'dead cat bounce' within this downtrend. In a video, Hyland speculated that the volatility in Bitcoin's price might be influenced by traditional finance giants, hinting at potential manipulation by Wall Street to position themselves strategically. Bitcoin's dominance, which reflects its share of the overall cryptocurrency market, has decreased by 5.13% over the past six months, currently standing at 59.90%, as reported by TradingView. On November 4, Bitcoin's price fell below the $100,000 mark for the first time in four months, raising concerns about its future trajectory. At the time of publication, Bitcoin is trading at $102,090, according to CoinMarketCap. Despite Hyland's optimism about the altcoin market gaining momentum, other indicators still suggest a market heavily focused on Bitcoin. CoinMarketCap's Altcoin Season Index is at 28 out of 100, indicating a 'Bitcoin Season.' The last indication of an 'Altcoin Season' was on October 8, shortly after Bitcoin reached a new all-time high of $125,100. However, the indicator quickly shifted to a risk-off mode following a market crash on October 10, which resulted in approximately $19 billion in leveraged positions being liquidated. Some industry experts anticipate that the next altcoin season will be more selective and concentrated compared to previous cycles. Maen Ftouni, CEO of CoinQuant, a company specializing in algorithmic trading tools, suggested that older cryptocurrencies with an exchange-traded fund (ETF) or those expected to receive one will attract significant capital during the next altcoin season. Ftouni emphasized that not all coins will experience substantial returns, with liquidity likely to be concentrated in specific areas, including established cryptocurrencies.