The owners of the crypto analytics startup Glassnode have warned that cryptocurrencies may lose all positive momentum following last week’s market collapse.
Jan Happel and Yann Allemann, who go by the moniker Negentropic on the social networking site X, inform their 63,400 followers that “altcoin season,” which began in late November, may come to an abrupt conclusion after alts saw substantial pullbacks over the previous week.
According to the Glassnode co-founders, traders and investors will likely avoid altcoins unless Bitcoin regains a critical psychological price threshold.
“Is this the end of the altcoin season?”
Bitcoin’s dominance is rising after falling below $100,000, while altcoins are losing vital support. Dominance has increased and resumed its rising trend, indicating a stronger BTC environment.
If BTC stabilizes over $100.00, we may witness a rise in cryptocurrencies now in accumulation zones. Until then, Bitcoin looks to be leading, with altcoins trailing.
The Bitcoin Dominance (BTC.D) chart shows how much BTC accounts for in the entire crypto market capitalization. In the present market conditions, a rising BTC.D indicates that altcoins are losing value quicker than Bitcoin.
At the time of writing, BTC.D was trading at 59%.
Looking at Bitcoin, Glassnode executives said long-term Bitcoin investors are significantly selling their holdings, while other investor generations fill up the slack.
“The board keeps shifting.
As BTC continues to flow out of exchanges during this downturn, long-term holders quit with force, while short-term holders enter without hesitation.
Whales quietly accumulate, miners stay impartial, and selling pressure has just reshuffled the board.
“New hands are absorbing the sales.”
