When altseason? Here’s why Bitcoin is leaving major altcoins like Ethereum behind


Ether (ETH), the native cryptocurrency of the Ethereum blockchain, has been lagging behind Bitcoin (BTC). Traditionally, when BTC surges, altcoins are likely to rally with bigger upside value actions.

This time, Bitcoin has been clearly outperforming the altcoin market, significantly in December. BTC market cap dominance has not too long ago risen to a one-year excessive of round 70%, largely due to the big sell-off in XRP up to now week. 

BTC/USD vs. ETH/BTC (yellow), LTC/BTC (orange), XRP/BTC (blue) 1-day candle chart (Bitstamp). Supply: Tradingview

The distinction within the value discovery of Bitcoin

The distinction between the present value pattern of Bitcoin and former bull cycles in 2018 and 2019 is that BTC has entered value discovery.

Merely put, value discovery is when an asset’s value surpasses the earlier excessive and retains going into uncharted territory. Altcoins normally change into stagnant when Bitcoin enters price discovery as a result of BTC sucks up the amount from the altcoin market.