bitcoin (btc) fell from a high of $108,135 on December 17 to $99,500, following hawkish comments from US Federal Reserve (Fed) Chairman Jerome Powell yesterday. However, some crypto analysts are pinning their hopes on a possible decline in bitcoin (btc.D) dominance that may pave the way for a peak season.
Since yesterday, the total cryptocurrency market capitalization has fallen by more than 6%, with most of the losses recorded in altcoins. In absolute terms, more than $200 billion has been wiped out of the cryptocurrency market in the last 24 hours.
Powell's tough remarks triggered the cryptocurrency market's decline, suggesting that the Fed's battle against inflation is not over yet. Powell indicated there could be only two interest rate cuts in 2025 instead of three.
Additionally, the Federal Reserve has raised the inflation forecast for 2025 from 2.1% to 2.5%. Even the forecast for 2026 is set at 2.1%, higher than the central bank's target of 2%. The Federal Reserve views inflation as a problem that could persist for another two years, causing interest rates to remain high for longer than initially anticipated.
The crypto market reacted negatively to Powell's statements, resulting in liquidations exceeding $850 million in the last 24 hours. However, some crypto analysts see the drop as an opportunity to accumulate altcoins and expect btc.D to drop in the coming days.
According to the chart below, during the weekly period, bitcoin dominance has been at a continuous level. bullish trend over the last two weeks, going from 56.24% to 58.50% at the time of writing this article. Some analysts are confident that btc.D is forming a lower high, which may be followed by a sharp decline leading to a full-fledged high season.
bitcoin analyst Eric Crown took to x to share his <a target="_blank" href="https://x.com/KrownCryptoCave/status/1869629387316052156″ target=”_blank” rel=”noopener nofollow”>thoughts on the btc chart.D. The analyst noted that the metric may fall to 54% after a small increase to 59%.
Another crypto analyst @CryptoGoos <a target="_blank" href="https://x.com/crypto_goos/status/1869665725453140020″ target=”_blank” rel=”noopener nofollow”>noted that btc.D peak is already here. The trader added that the altcoin season will likely continue after btc.D is rejected from resistance levels between 58% and 59%.
Similarly, bitcoin and stock market analyst Seth highlighted btc.D's performance over the past two market cycles. He stated that btc.D could follow a similar trajectory in this cycle, consolidating at a key support level of around 58% before an eventual decline.
That being said, former BitMEX Exchange CEO Arthur Hayes recently shared his outlook on the cryptocurrency market, predicting a “heartbreaking decline” around the inauguration of US President-elect Donald Trump on January 20, 2025. btc is trading at $100,978 at the time of this publication, a 3% less in the last 24 hours.
<img data-recalc-dims="1" loading="lazy" decoding="async" class="wp-image-356783 size-large" src="https://technicalterrence.com/wp-content/uploads/2024/12/Is-Bitcoin-Dominance-About-to-Give-Way-to-Alt-Season.png" alt="bitcoin” width=”980″ height=”631″ srcset=”https://bitcoinist.com/wp-content/uploads/2024/12/bitcoin_517d53.png?w=2648 2648w, https://bitcoinist.com/wp-content/uploads/2024/12/bitcoin_517d53.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/12/bitcoin_517d53.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/12/bitcoin_517d53.png?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/12/bitcoin_517d53.png?w=1536 1536w, https://bitcoinist.com/wp-content/uploads/2024/12/bitcoin_517d53.png?w=2048 2048w, https://bitcoinist.com/wp-content/uploads/2024/12/bitcoin_517d53.png?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/12/bitcoin_517d53.png?w=1140 1140w” sizes=”auto, (max-width: 980px) 100vw, 980px”/>btc is trading at $100,978 on the daily chart | Fountain: BTCUSDT on TradingView.com
Featured image from Unsplash.com, x charts and TradingView.com
