Cryptocurrency analyst Crypto Daan made evaluations regarding Bitcoin dominance (BTC.D) and the altcoin market.
According to the analyst, Bitcoin dominance has peaked in the current cycle and further increases could create good entry opportunities for strong altcoins against BTC.
Daan stated that he expects a temporary surge in Bitcoin dominance in the short term, saying this could stem from two different scenarios: “Either Bitcoin tests lower levels and panics in the market, or it enters price discovery and outperforms altcoins. Both scenarios have their advantages.”
Daan argued that for the market to progress healthily, it’s crucial for Bitcoin to lead the way out of consolidations. He stated that if altcoins simultaneously gain value while Bitcoin rises, this will bring short-term gains for investors but make the rally less sustainable.
The analyst, who predicted that Bitcoin dominance would decline to lower levels in 2025, stated that the outperformance of altcoins against BTC would not be valid for all projects, and that, as in this cycle, Ethereum and a few strong altcoins would especially stand out.
Daan also touched on his portfolio allocation, explaining that he currently holds 50% of his assets in Bitcoin and 50% in altcoins. He stated that he considers this balance healthy for the current phase of the cycle, noting that he had previously focused entirely on altcoins at this point, but that this was a high-risk choice and that investors should determine their own strategies based on their risk appetite.
*This is not investment advice.