Report: Bitcoin bull run causes altcoin season to fade

Original article: AMBCrypto, original author: Aakash Athawasya

Translator: Odaily Planet Daily Nian Yin Sitang

Every $1 increase in the price of Bitcoin is a testament to its value in the cryptocurrency pie. Although there are more than 2,000 cryptocurrencies on the market, Bitcoin’s market capitalization share of the entire crypto market highlights its undeniable importance.

According to an October report by cryptocurrency data analysis company Coingecko, among the top cryptocurrencies by market capitalization, only one has increased its market share. In the past month, Bitcoin's market capitalization has increased by 4.5%, accumulating more than $2 billion, and its price has risen by more than 12% this month.

From this perspective, no other major cryptocurrency has grown in market share. In fact, most of the top altcoins have lost market share. For example, as of October 31, ETH held 11.5% of the market cap, down 1.3% from the previous month. Other altcoins that lost market share included Tether (USDT), Binance Coin (BNB), and Ripple (XRP), while Bitcoin Cash (BCH) and Chainlink (LINK), which are about to undergo hard forks, did not see any changes in their market share.

Crypto market capitalization share from September to October, source: Coingecko

In the above report, Coingecko pointed out that the “handover” of altcoin market share to Bitcoin may be a sign that the Bitcoin bull run has led to the fading of the altcoin season. The report stated:

“This could be a sign that the altcoin cycle is slowing as investors shift back toward Bitcoin in their portfolio allocations.”

Ethereum’s concession to Bitcoin is more of a recent theme. Back in Q1 2020, ETH’s market share grew by 0.8% to 8.47%, while Bitcoin’s market share was 67.8% at the time. Bitcoin started the year at $7,200 before falling to $5,500. In Q1, Bitcoin lost 3.5% of the entire crypto market, while Tether, likely benefiting from the increased demand for storing stablecoins rather than volatile cryptocurrencies, became the biggest winner with a 1.1% market share.

In the second quarter, from April to June, Bitcoin’s market capitalization share increased by 0.3%, while Ethereum’s market capitalization share increased the most, reaching 1.6%. However, other major altcoins including XRP, BCH, BSV and LTC lost market share.

In the third quarter, from July to September, price increases did not increase Bitcoin's market share. As prices began to strengthen and then fell, Bitcoin lost 6.6% of the entire market. ETH remained around $400, and its market share rose by 2.3%. Bitcoin's market share was occupied by most altcoins, including exchange platform coins (BNB) and stablecoins (USDT), which gained market share.

Overall, Bitcoin has reached its highest point in June in terms of market capitalization, and as BTC prices hit a nearly two-year high while altcoins perform flat, more and more of this cake will be "eaten" by Bitcoin.