As Bitcoin (BTC) continues to show consolidation movements with mostly sideways trends, the unexpected downturn of altcoins has taken investors by surprise. Experts point to the Bitcoin Dominance Index (BTC.D) as the hidden answer to the question, “Why are altcoins falling?”
Despite a 0.75% decrease in Bitcoin’s value over the last 24 hours, trading at $43,755, many altcoins have seen declines exceeding 5%. Ethereum (ETH), the largest smart contract platform, has dropped by 1.07%, trading at $2,237.
Looking at the top 10 altcoins by market value, significant downward movements are evident. Binance Coin (BNB) fell by 4.68% to $305.54, Solana (SOL) by 7.14% to $95.23, and other altcoins like Ripple’s XRP, Cardano’s ADA, Avalanche’s AVAX, and Dogecoin (DOGE) also experienced notable declines.
Specialists suggest that the current altcoin market downturn, especially among major altcoins, is tied to Bitcoin Dominance. They forecast that Bitcoin will accumulate potential energy for an upward trend, suppressing altcoins and causing them to drop in the interim.
Data from Tradingview indicates that Bitcoin Dominance (BTC.D) has risen by 0.5% in the last 24 hours to 53.44%. This metric has been steadily increasing since December 28, 2023, when it dipped to 50.94%. Experts believe the rise in BTC.D could signal a buying opportunity for altcoins and potentially set the stage for a stronger rebound.