In the crypto market, capital usually flows from the majors, like Bitcoin and Ether, into altcoins. However, the above trends show that, lately, the capital rotation is happening away from high-risk altcoins toward low-risk assets like stablecoins and Bitcoin.Technically, Bitcoin’s dominance percentage over the crypto market, which measures the share of Bitcoin’s market capitalization in the total crypto valuation, experienced an uptrend in 2023 before encountering resistance at the 48.
If Bitcoin buyers are unable to break out above this resistance, the market can expect an altcoin rally relative to Bitcoin.On the other hand, the TOTAL2 chart, which measures the market capitalization of the cryptocurrency market excluding Bitcoin, had its positive breakout from the triangle pattern reversed, pushing the index back into a bearish triangle pattern that started forming in October 2022.
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Glassnode’s analysis of Uniswap and futures trading volumes reveals that the uptrend that began in the first quarter of 2023 began cooling off in April, with regulatory concerns and a lack of liquidity promoting risk-off tendencies among traders.