Bitcoin’s Dominance: Altcoins Struggle to Keep Up

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Ladies and gentlemen, gather ’round for a tale of digital currency dominance. Our protagonist, Bitcoin, has been flexing its muscles lately, commanding nearly 62% of the total crypto market. That’s right, folks, it’s the highest level since February 2021.

Now, you might be wondering, “What does this mean for the other cryptocurrencies?” Well, let’s just say they’re struggling to keep up. Traders are closely watching BTC‘s price movement, particularly the $102,000 CME Gap—a crucial level for potential reversals.

In simpler terms, Bitcoin is like the popular kid in school, and the altcoins are the ones trying to catch up. But hey, who doesn’t love a good underdog story?

Back in February 2021, Tesla announced a $1.5 billion investment in BTC and a commitment to accept it for payments. This caused the price to surge above $44,000, according to Reuters. The momentum continued throughout the year, driven by growing adoption among businesses and organizations, ultimately pushing BTC’s price past $68,000 in November 2021.

But alas, all good things must come to an end. The recent drop is mainly due to fear of a global economic slowdown and anxiety stemming from Trump’s tariff policies against Mexico, Canada, and China. This market downturn has affected the bigger altcoin market.

Now, let’s talk about the “Kimchi Premium.” No, it’s not a new Korean dish. It’s the price gap between BTC in South Korea vs. global markets. This premium now stands at 12%—the highest in three years. This highlights the strong demand for Bitcoin in South Korea despite market turbulence.

The CME Gap and Bitcoin dominance

MASSIVE #BITCOIN CME GAP.

Normally, these gaps tend to get filled over the course of the week…

— Crypto Rover (@rovercrc) February 3, 2025

For traders, the CME Gap at $102,436 is a key level to look out for, says CryptoRover, a Key Opinion Leader in the crypto space. CME Gaps occur when BTC’s price makes a significant move whilst the CME futures market is down. Historically, BTC tends to fill these gaps over the weekend, becoming a critical area of interest for traders looking for price reversals or corrections.

While BTC’s dominance strengthens, many predict an upcoming altcoin season by February 2025, similar to previous market cycles.

ALTSEASON HAS ALWAYS STARTED IN FEBRUARY!!!

— Mister Crypto (@misterrcrypto) February 1, 2025

So, there you have it. Bitcoin’s dominance continues to grow, leaving altcoins in its dust. But hey, who knows? Maybe the underdogs will have their day in the sun. Until then, let’s all sit back and enjoy the show.

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2025-02-03 12:48