The crypto-verse has been in a loop since the start of the month. Where the price action of digital assets has been strolling a narrow bandwidth. While crypto merchants have been stressing over the pocket-heavy market trends, the space comes across another possible bummer. As analytics suggest an increase in whale interest over the retailer’s interest in Bitcoin.
As previously reported by CoinPedia, a significant count of retail investors seem to have parted ways with the crypto leader off-late. While sections have been fretting over the shift in market trends, the other half has been taking the trend sportingly. Meanwhile, altcoiners are now optimistic of an alt season poised to be around the corner.
Have Altcoins Pushed Bitcoin To The Bears?
The market dominance of Bitcoin had earlier fallen below 40%, which did create panic amongst amateur Bitcoiners. While altcoins are hoping for an alt season to follow in the near future. The number of Addresses Sent to Exchanges (7d MA) just reached a 7-month high of 6,711.262, which justifies the whale movements in recent times.
The short-term supply of Bitcoin has decreased by 32%, while long-term holders added 16% to their treasuries during 2021. The sentiment of retailers in the space has been bearish off-late, while whales have been seizing the opportunity. A proponent cites that, with the abundance of potential altcoins to choose from, Bitcoin is losing its first-mover competitive advantage.
The dominance of the top-tier assets could continue to ebb further, with an influx of capable alternatives. The fast-evolving market has been paving way for newer protocols to establish their reign. With emerging protocols such as Polkadot, Solana, Cosmos, Avalanche in the picture, the diminishing dominance of Bitcoin and Ethereum does seem reasonable.
The influx of newer higher-performing digital assets has also been an imperative rationale for a plummet in retailers with Bitcoin. However, the depleting numbers could rebound in due course of time as retailers move their holdings back into Bitcoin.
Collectively, a shift in interests could escort a headstart for emerging protocols that have been leaving the legacy coins in the dust. However, the dominance of Bitcoin will retrace its path to higher levels, owing to the widespread prominence of the digital asset. The space might witness a moonish run by the star crypto, following the alt season which is expected to arrive at the start of the first quarter of 2022.