The Altcoin Season Ends, Bitcoin Takes the Lead

The cryptocurrency landscape is undergoing a silent earthquake. As altcoins strive to stand out, a giant has regained control: Bitcoin. By the end of 2024, the 'altcoin season' has ended, making way for the overwhelming dominance of BTC. According to respected analyst Rekt Capital, Bitcoin could reach a 71% market share before any altcoin revival. This scenario echoes as a warning to overly optimistic investors. But how did we get here? And what does this motivation reveal about the market's development? Bitcoin: The return of the king? The numbers speak for themselves. In early December, Bitcoin's dominance reached a floor of 55%, acting as a catalyst for rapid growth. In just a few weeks, BTC has increased its market share by 64.3%. For Rekt Capital, this trajectory is not surprising. It fits a recurring pattern: Bitcoin always regains strength before temporarily making way for altcoins. But this time, the mechanism seems more brutal. The organization's ETFs, political speculation ( such as the strategic reserve mentioned by Trump ), and the halving have injected an unprecedented dose of adrenaline into the bloodstream of BTC. History tells us that Bitcoin must surpass the 71% dominance level to kickstart the "altcoin season". A paradox? Not exactly. This level symbolizes the peak of extreme confidence in BTC, often followed by a retreat of capital into riskier assets. But nowadays, the path to this threshold is filled with obstacles. Altcoins, weakened by a series of liquidations and risk aversion, are struggling to hold steady. Ethereum, although the leading altcoin, has been lagging behind Bitcoin in a downward trend for many years. A weak signal for the entire industry. The "Gravestone Doji" Effect: A Disturbing Omen Some traders, such as Titan of Crypto, are cautiously looking at the chart. The recent 'Gravestone Doji' observed on BTC.D - a rare technical figure - indicates the possibility of a reversal. This formation is often associated with a depletion of the uptrend and may signal the awakening of altcoins. However, Rekt Capital remains adamant: as long as Bitcoin has not reached 71%, any effort to recover altcoins will be futile. Therefore, the hope for a "crypto spring" depends on the final escalation of BTC. Altcoins are paying the price for a hostile environment. Bitcoin ETF, considered a safe haven for stability, is diverting attention - and capital - from investors. In the context of political tension and high interest rates, Bitcoin is a safe haven, while altcoins are classified as speculative assets. All hopes for the revival of altcoins depend on Ethereum. But ETH/BTC, a major currency pair, paints a gloomy picture. In a multi-year downtrend, Ethereum is struggling to reverse the situation. For many, a decisive break of this ratio is necessary to recover the rest of the market. Meanwhile, investors are seeking refuge in Bitcoin, widening the gap even further. The dominance of Bitcoin is not a disaster but a phase. Previous cycles show that after each peak, altcoins all undergo a revival. But timing is crucial. Therefore, patience is imperative. Meanwhile, experienced traders are monitoring two indicators: BTC.D's RSI and other indicators lost in the market chaos.