Altcoin Market Share Still Lagging Behind Bitcoin Despite 21% Growth
The altcoin market capitalization has seen a 21% increase over the past month, but its share of the combined Bitcoin-and-altcoin market has actually decreased by 0.9 percentage points over 90 days, according to Glassnode data as of September 7.
Bitcoin's recovery from August lows near $62,000 has been significant, with a gain of around 27% to trade at approximately $79,000 as of September 15. However, Bitcoin remains below the cost-basis wall identified by Glassnode, which is between $83,000 and $86,000.
A roughly 1.07 million BTC was acquired within this range, primarily by long-term holders, with the heaviest concentration near $85,000. Sellers positioned at this level are defending their cost basis, indicating a significant supply wall in place.
The upcoming Federal Reserve meeting on September 16 is expected to have a major impact on Bitcoin's price action, with economists predicting a 25-basis-point rate hike to 3.75-4%. The 10-year Treasury yield briefly touched 5% intraday on September 14, further increasing the hurdle rate for risk assets.
Despite altcoins participating in the rebound, they have not outperformed Bitcoin. In fact, their share of the combined market has been declining over the past three months. To turn the tables and see a genuine rally in the fourth quarter, both easier monetary policy and statutory clarity are needed.