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BTC now represents 62.2% of the total crypto market cap, its highest since early 2021, reflecting increased investor trust and institutional interest.
Despite short-term consolidation, analysts like Michaël van de Poppe argue the current cycle could extend well beyond historical norms.
Federal Reserve reassessment of inflation policy and declining gold demand are boosting investor sentiment toward cryptocurrencies.
The cryptocurrency market is navigating a complex mix of consolidation and forward momentum. As of this week, Bitcoin has surged in dominance, now commanding 62.2% of the total crypto market capitalization, currently at an impressive $3.33 trillion. The increase reflects a 0.74% gain in Bitcoin's share over the past 24 hours.
In contrast, Ethereum's share has slipped to 9.3%, and Dogecoin, which had recently seen renewed interest from retail traders, is showing signs of weakening. Despite these short-term setbacks in altcoins, analysts argue that the broader bull market is still intact and far from reaching its peak. This increase, a 0.074% rise in Bitcoin's share in the last 24 hours, is also reflected in the broader market.
However, Ethereum's share has dipped to 9.3%, and Dogecoin, which had recently made a resurgence with retail traders, is starting to show signs of fading interest. Even though we are seeing a short-term pause in altcoins, analysts believe the overall bull market is still very much intact, and it is further undetermined how far it has to go before peaking.
The Crypto Fear and Greed Index from CoinMarketCap indicates the current aura of the market is “Greed,” with a score of 69. This is down a bit from yesterday's 71 but solidly up from last month's reading of 29, indicating a lot of “Fear.” The movement shows investor confidence is returning despite the hesitant approach.
Analysts believe the current crypto cycle is different from previous cycles, specifically in duration and the speed of recovery.
Among the positive signals, Federal Reserve Chair Jerome Powell announced that the bank is reviewing its approach to inflation and employment as part of the shift in policy actions more broadly. Some market participants see the review as positive in terms of the possibility of conditioning markets, stating that aggressive monetary policy should be eased and that relief will be expected for risk assets like cryptocurrencies.
Traditional markets had a muted response to the news. The S&P 500 futures increased by 0.0042% to 5,933.50, and the Nasdaq-100 futures increased by 0.020% to 21,404.50. The Dow Jones Industrial Average futures also slightly increased by 0.026% to reach 42,396.00.
Despite some short-term price stagnation, several market experts remain bullish about the long-term outlook. Crypto market intelligence firm Santiment reported on Thursday that Bitcoin is currently facing resistance in the $104,000 to $105,000 range. This temporary pause sparked some mild bearish sentiment by traders, but it's largely considered a natural slowing down and not a peak.
Notable crypto analyst Michaël van de Poppe provided more context by stating, "This market isn't going to peak in the next 6 months if we just managed to have a 4-year bear market on altcoins closing out." He went on to suggest the usual 4-year crypto cycle might not exist, and that we could see a longer and perhaps steadier bull phase.
Also Read: Bitcoin to $250K in 2025, Predicts Crypto Analyst Scott Melker
Van de Poppe emphasized, “The previous bear market was 2 years, and had 2 years of bull since. The 4-year cycle doesn’t exist anymore,” reinforcing the idea that investors should adjust their expectations accordingly.
Federal Reserve Chair Jerome Powell has indicated a strategic shift back toward controlling inflation, given that the supply shocks are amplifying. The Fed is reconsidering its approach to monetary policy, particularly the average inflation targeting strategy adopted in 2020.
In another story impacting global risk appetite, the price of gold has fallen to about $3,220 per ounce. The precious metal is heading for a weekly loss of more than 3% because of the easing of U.S. and China trade tensions. As gold's appeal diminishes, investors feel better about considering alternatives to traditional assets like Bitcoin.
While Ethereum and Dogecoin have recently experienced price dips, Bitcoin’s growing dominance and ongoing institutional interest continue to paint a bullish long-term picture for the crypto market. Sentiment indicators, macroeconomic shifts, and evolving cycle theories suggest that this is not the time for panic, but rather for strategic patience.
As the market matures, seasoned investors increasingly focus on long-term trends rather than short-term fluctuations. According to many, the crypto peak is still a distant landmark on an ongoing journey.
