Rising Bitcoin Dominance Sparks Warning of Sharp Altcoin Declines

Gareth Soloway, chief market strategist at VerifiedInvesting.com, is warning that altcoins could fall by 30% to 50% if Bitcoin dominance continues to rise.

Soloway notes that many traders assume rising dominance means Bitcoin is doing well, but in practice it often occurs when Bitcoin slips slightly while altcoins fall much harder.

The analyst points out that Bitcoin dominance has broken above a long-running downward trend line and then dropped back to retest that line, which he described as normal. If it holds above the level, he expects dominance to climb further.

Soloway estimates that a 10% fall in Bitcoin could push it back to the mid-$70,000 range, with altcoins losing 30-40%, while a deeper 20% correction in Bitcoin could see altcoins drop as much as 50%.