Bitcoin dominance falls as investors flock to altcoins

The key crypto currency Bitcoin (BTC) has been able to stabilize above the psychologically important USD 20,000 mark for the time being and is currently trading in a 10 percent trading range between USD 19,884 and USD 21,892. Many investors are taking advantage of Bitcoin’s breather and are increasingly getting back into Altcoin projects. As a result, BTC dominance recently slipped below the important support level at 44.25 percent. In the last 14 trading days, Bitcoin’s market power has decreased by more than 10 percentage points to currently 43.44 percent.

After the second-largest cryptocurrency Ethereum (ETH) had also come under significant pressure in recent weeks, the ether price is currently recovering significantly and recently outperforming Bitcoin. Whether the price recovery in the US stock indices will continue to gain momentum in the coming trading days, or whether the interim recovery is only of a temporary nature, should also be determined by relevant economic data this week. In particular, the publication of the US gross domestic product tomorrow, Wednesday, and the development of consumer prices in the European Union (EU) next Friday, July 1, could lead to a short-term directional decision on the global financial markets.

Price developments of the top 10 altcoins

• With the exception of Cardano (ADA), all top 10 altcoins show a price increase in the last seven trading days.
• The list of weekly winners is led by memecoin Shiba Inu (SHIB), up 34 percent, followed by Dogecoin (DOGE), up 19 percent. Both cryptocurrencies are thus increasingly detaching themselves from their lows for the year and have now formed buy signals in the daily chart.
• Last week’s winner Solana (SOL) and Tron (TRX) with an 11 percent price increase, as well as the binance Coin (BNB) with 10 percent increase in value. In particular, the Solana price has been able to break away from its low for the year after the last few months of weak trading and is currently 51 percent higher.
• The underperformers of the week are Polkadot (DOT), with a price increase of just one percent, and Cardano, which is down one percentage point compared to the week. Both crypto currencies developed weaker than Bitcoin itself, which can increase by almost 2 percentage points on a weekly basis.

Stability of the top 10

• As long as the BTC price remains in a trading range above the USD 19,000 mark, investor interest in the top ten alternative cryptocurrencies is likely to persist in the coming weeks.
• If the bullish investors succeed in stabilizing the prices of the top 10 altcoins above the recent lows, a sustained recovery movement can be planned.
• The fact that the altcoin sector of the key cryptocurrency Bitcoin has been able to snatch market share over the past seven trading days is another indication of investor interest in the top 10 cryptocurrencies.
• As already discussed in the overview article from the previous week, the chances of a sustained technical countermovement are statistically still good.
• Looking at the ranking of the top 10 altcoins, there is a change of place to report. Ripple uses the underperformance at Cardano and moves up to fourth place.

Winners and losers of the week

• The price recovery on the crypto market continues this week. More than 70 percent of the top 100 altcoins show a price increase in a week-to-week comparison.
• This bullish development also pushes the total market capitalization back above the psychological $1 trillion mark.
• Around 40 altcoins of the 100 largest cryptocurrencies show a double-digit price increase.
• The list of weekly winners is led by DeFi project TitanSwap (TITAN) with another 49 percent price gain. The TITAN course had already increased by 80 percent in the previous week. A newcomer among the top 100, Evmos (EVMOS), can also increase significantly with a 39 percent increase in value. The proof-of-stake blockchain built on top of Cosmos (ATOM) offers users interoperable transactions with the Ethereum blockchain. The Layer2 scaling solution Polygon (MATIC) with a price increase of 38 percent and the Metaverse project The Sandbox (SAND) with 34 percent also increased significantly in value.

Few losers in the last seven trading days

• The list of underperformers is headed by the Synthetix Network Token (SNX). After a strong previous week, investors seem to have taken more profits. The two Bitcoin forks Bitcoin SV (BSV) and Bitcoin Cash (BCH) are also lighter with moderate course corrections of six percent.
• In the current market situation, investors should always keep an eye on the dominance of the crypto key currency in addition to the price of Bitcoin. If BTC dominance rises back towards the last historical highs in the coming trading days, investors could increasingly convert profits from their altcoin positions back into Bitcoin.

Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment by the analyst.

The chart images were created using TradingView created.

USD/EUR exchange rate at the time of going to press: EUR 0.95.