Bitcoin’s Market Share Drops Below 60%, Hitting Six-Month Low, While TOTAL2 and TOTAL3 Rise, Indicating a New “Altcoin Season” May Be Brewing
(Background: El Salvador hints at launching a “Bitcoin Bank,” Presidential Advisor: BTC is unstoppable)
(Additional Context: Trump will allow 401(k) retirement funds to invest in Bitcoin! Vice President Vance: Soon, 100 million Americans will own BTC)
Bitcoin’s market share (BTC.D) reached a four-year high of 66% in mid-June this year, but has been on a downward trend recently. As of today (10th), it has dropped below 60%, marking a six-month low, falling to 59.97% before this report was finalized, a decline of over 3% within a week.
The breach of this key level indicates that capital is beginning to seek higher beta target markets, and there is an increasing sentiment that this marks the start of capital rotation into altcoins.
TOTAL2 and TOTAL3 Rise
Notably, the total market capitalization excluding Bitcoin (TOTAL2) surged 11.94% over the week, currently reaching $1.56 trillion; the total market capitalization excluding Bitcoin and Ethereum (TOTAL3) also increased by 8.58% during the same period, surpassing $1 trillion. This indicates that while capital is leaving Bitcoin, it is quickly entering other cryptocurrencies. Additionally, the recent continuous net inflow of stablecoins into exchanges provides “ammunition” for altcoins to rally.
Opportunities and Risks Coexist: Investors Should Exercise Caution
However, despite Bitcoin still oscillating at high levels, I must remind investors that if BTC experiences a significant correction, the decline in altcoins will likely be even more severe.
When sensing a negative market atmosphere, one should be wary of the “retracement risks brought by high volatility” and avoid blindly chasing highs. Proper diversification, setting profit-taking and stop-loss levels, and dynamically adjusting positions remain essential strategies to navigate through volatility.
