Binance Altcoin Dominance Hits 78%, Analysts Anticipate a Thrilling Q1 2025

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Based on observations by Burakkesmeci, a contributor at CryptoQuant, there has been a significant 11% increase in trading volume dominance over the last five months.

Burakkesmeci underscored the growing popularity of altcoins, pointing to the continuous surge in trading activity on Binance as evidence of faith in an upcoming altcoin market boom, or ‘alt season’, predicted for 2025. Since May 2024, investor excitement has been gradually building, with Binance’s control over the altcoin market being significantly less at 50.80% at that time.

Burakkesmeci stated that the continuous increase in altcoin trading activity on Binance suggests a strong possibility of an altcoin market rally by 2025, bolstering optimism.

Based on the heightened activity, there could be an indication of an approaching altcoin rally; however, certain indicators provide a more balanced view. As of January 12, CoinMarketCap’s Altcoin Season Index was at 45 out of 100, indicating that the market still tends to favor Bitcoin over altcoins.

140-Day Golden Window for Altcoins

The proportion of Bitcoin’s control in the overall crypto market, known as Bitcoin Dominance, currently stands at 57.95%, representing a 2.79% increase over the past month. This growth is significant to analysts who see a decrease in Bitcoin dominance as a possible precursor to an altcoin market surge or “altcoin season.”

Market guru Crypto Bullet shared insights about altcoins experiencing a “Golden Period” that typically lasts around 20 weeks, also known as the “140-day Golden Window.” During this phase, non-Bitcoin cryptocurrencies tend to gain substantial traction. This cycle initiated following Bitcoin’s dominance reaching its zenith in November 2024, when Bitcoin surpassed $104,000 as a new record high.

After reaching its peak, the influence of Bitcoin seems to have been denied at the Fibonacci retracement level of 0.618, hinting at a possible shift in trend. As Crypto Bullet points out, traditionally, Bitcoin’s dominance takes around 20 weeks to hit a low point after reaching its peak. Currently, we are five weeks into this cycle, leaving another 15 weeks for potential growth in altcoins.

Over the past three months, the Cryptocurrency market has experienced a significant surge, with VIRTUAL standing out as the top performer, increasing an astounding 4079.96%. Not far behind are PENGU and HYPE, each surging over 576%. Major players such as XRP, DOGE, and ADA have also demonstrated strong double-digit growth. Forecasts for XRP and Dogecoin in 2025 are particularly optimistic.

Score: CoinMarketCap

Currently, Bitcoin is experiencing a notable 44.95% increase, however, it lags behind various other cryptocurrencies. For instance, SUI, ENA, and XDC have demonstrated significant triple-digit gains, indicating increasing investor trust. With the market buzzing with anticipation, traders are scanning for emerging trends, hoping for another round of bullish activity.

Ether’s Gain Signals Altcoin Surge Ahead

The spotlight on Ethereum‘s performance continues as enthusiasm for other digital currencies rises. Currently, Ether is being traded at $3,287 on January 12, marking a 0.65% rise over the past day, based on data from Brave New Coin’s Ethereum Liquid Index. The anonymous trader known as Mister Crypto predicts a substantial price surge, estimating that Ether could potentially soar from $4,000 to $8,000 within the upcoming weeks.

An upward spike in Ether usually signifies increased action within the overall cryptocurrency market, since Ethereum serves as a significant benchmark for other digital currencies. It appears that the rise in Ethereum’s worth could potentially spark the long-awaited surge of interest in altcoins.

Hunter Horsley, Bitwise Invest CEO, showed great excitement about the cryptocurrency market’s possibilities this year, emphasizing anticipation for significant advancements. Analyst Crypto Bullet suggested that this change could result in a groundbreaking first quarter, moving investors’ attention from Bitcoin to other cryptocurrencies. Prudent investors looking to invest in crypto at present should secure their positions while the opportunity lasts. With only one week left before Trump assumes office, the market is expected to respond significantly.

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2025-01-13 15:36