As the year draws to a close, cryptocurrency investors are increasingly turning their attention away from Bitcoin (BTC) and Ethereum (ETH) to other altcoins. Data confirms this trend, showing that the total USD value locked in active Bitcoin futures contracts has hit a two-year low, while Ethereum’s value remains unchanged.
According to Coinalyze, the USD value locked in active Bitcoin futures contracts accounts for 38% of the total open futures positions in the market, valued at $30.4 billion. This represents the lowest level of Bitcoin dominance in futures contracts in the last two years.
Coinalyze analysts suggest that the shift in dominance from Bitcoin to altcoins in the futures market is due to a growing interest in altcoin futures. This trend typically follows a significant Bitcoin rally, indicating an increased risk appetite among investors who are now moving their capital to altcoins.
Bitcoin, the largest cryptocurrency by market value, has seen a rise of over 60% since October, reaching $44,000. This surge was largely driven by a decline in Treasury yields and expectations that the U.S. Securities and Exchange Commission (SEC) might approve one or more spot Bitcoin ETFs between January 8-10, 2024. Currently, Bitcoin has risen over 155% from the beginning of the year, trading at $42,681.
Looking closely at the data, Bitcoin’s dominance in open futures positions decreased from about 50% to 48% at the end of October. Meanwhile, Ethereum’s share remained stable at around 21%, but other altcoins saw their share increase from 32% to 41%.
Since then, many altcoins have experienced triple-digit growth. For instance, Injective’s INJ token rose by 500%, Kaspa’s KAS by 300%, and THORChain’s RUNE by more than 200% during this period.
