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- Daan Crypto Trades believes SOL/BTC is not the appropriate gauge for altcoin sentiment.
- According to Daan, Solana’s recent growth hardly impacted Bitcoin’s dominance.
- The investor explained that altcoin seasons are usually short but explosive.
A renowned cryptocurrency investor identified as Daan Crypto Trades on X has argued that the SOL/BTC pair is not the appropriate gauge for altcoin strength in the crypto market. In a recent post, Daan acknowledged SOL’s impressive performance but noted that it did not have a proportionate impact on Bitcoin dominance (BTC.D).
Seeing a lot of people claim $SOL/BTC is a better proxy for general alt strength than ETH/BTC.$SOL performed extremely well and the general alt market underperformed BTC as BTC.D grinded higher.Therefore, I would not say SOL/BTC is a good gauge for overall altcoin strength at… https://t.co/8KpdnACoOt— Daan Crypto Trades (@DaanCrypto) April 28, 2024
Daan’s position counters the growing impression that SOL/BTC has become a better proxy for measuring the general altcoin strength than ETH/BTC. According to him, the SOL/BTC idea stems from Solana’s recent performance, which most people consider impressive despite having no significant impact on BTC.D.
The crypto investor explained that if SOL/BTC led the overall altcoin market surge, BTC.D would not have performed so well recently. He cited that the Bitcoin dominance metric sat at 3-year highs while Solana did more than 10X in the past one and a half years.
It is essential to note that Daan’s recent post supported his altcoin market analysis, where he confirmed ETH/BTC as the ideal proxy for alt risk or sentiment. According to him, the altcoin season generally lasts a short time. However, he noted that whenever that happens, it is usually explosive.
Daan expressed his point using historical data from the BTC.D chart on TradingView. He showed how swiftly Bitcoin Dominance slipped during a past altcoin season and how the altcoin market consolidated ahead of that period. With his explanation, Daan revealed that the altcoin market gained market cap ahead of the altcoin season, following which the rally began.
BTC.D was at 54.55% at the time of writing, dropping from a recent high of 57.03%, according to data from TradingView. Considering Daan’s analysis, the current trend suggests growing altcoin accumulation that could precede an altcoin season.
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