Bitcoin Dominance Dives in May as Altcoins Form Golden Cross

It’s a sign of a bullish market for all crypto assets that are not called BTC. Last time this happened in 2021, a bevy of popular altcoins returned cryptocurrency buyers 28,000% by the end of the market cycle.

Bitcoin Dominance Takes 4% Spill

Bitcoin’s market share fell from 65% to 61% between May 7 and May 13, according to TradingView. Markets haven’t seen that 65% level of BTC dominance over altcoins since 2021.

That year was the altseason, as crypto veterans like to call it, that launched Dogecoin’s price tens of thousands of percent upward in under 12 months.

Meanwhile, in 2021, a $100 Shiba Inu investment went from Jan. 1, 2021, to over $14 million by Mar. 2023. Two unemployed Millennial brothers from Westchester, NY, invested $8,000 in Shiba Inu that year after a family friend told them about it.

https://twitter.com/Excellion/status/1920599548272992269?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank

As Bitcoin boosters like to say: Do the math.

While a 4% dip in Bitcoin dominance may seem like a small fraction, the numerator here is a global Internet currency with a two trillion dollar market cap on May 7.

That’s something like an $80 billion dip in market share against altcoins over six days in May. Furthermore, Bitcoin’s price and market cap grew by 7% during those six days, even as its wedge on the pie chart shrank.

Altcoins Form Bullish Golden Cross

Meanwhile, an index of altcoin prices formed a golden cross in May, potentially signaling bullish momentum into a prolonged bull run.

As one popular crypto YouTube analyst reported on May 13, the total altcoin market cap for major currencies has formed a golden cross. That’s when a shorter-term moving average crosses from below to above a longer-term moving average.

https://twitter.com/bitcoin_duniya/status/1922298587771236863?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank

The moving average for a cryptocurrency is the periodically updated average of all its prices over a previous period. Traders use that to get a sense of the market’s inertia.

If the last market cycle’s performance repeats on this round, the total altcoin market cap could exceed $5 trillion sometime by 2026. Here are five more signals that altseason may soon commence.