[Analysis] Altcoin Market Cap Rises 21% in a Month, but Share Against Bitcoin Declines

• Altcoin market capitalization rose 21% over the past month, but its market share relative to Bitcoin fell by 0.9 percentage point.
• Markets are watching the vote on the CLARITY Act and the Fed rate decision as key variables that could determine whether the altcoin rebound broadens.
• Unlike during past Bitcoin peaks, altcoins’ market share has now fallen by 0.9 percentage point, suggesting no clear sign of capital rotation.

Forecast Trend Report by Period

Altcoins’ combined market capitalization has risen more than 20% over the past month, but their share of the crypto market relative to Bitcoin has actually declined. A Sept. 15 vote on the CLARITY Act, a U.S. crypto market structure bill, and the Federal Reserve’s Sept. 16 rate decision are seen as key variables in determining whether the altcoin rebound broadens.

Crypto-focused outlet CryptoSlate reported Sept. 15, citing Glassnode data, that altcoin market capitalization climbed 21% over the past month. Over the past 90 days, however, altcoins’ share of the combined Bitcoin and altcoin market fell by 0.9 percentage point.

Over the same period, Bitcoin rebounded about 27% from its August low near $62,000 to around $79,000. Glassnode said buying interest for about 1.07 million BTC was concentrated in the $83,000 to $86,000 range, making that zone a potential key resistance area.

Markets are focused on the Sept. 15 CLARITY Act vote and the Fed’s Sept. 16 rate decision. If the CLARITY Act advances, CryptoSlate said, it could support <a href="https://xpertsstudio.com/hong-kong-crypto-exchange-coinex-to-shutdown/” title=”Hong Kong Crypto Exchange CoinEx To Shutdown”>exchanges, token markets and decentralized finance, or DeFi, where regulatory uncertainty has been relatively high.

Still, a price increase alone is not enough to conclude that altcoins have entered a bullish phase. CryptoSlate said investors should also track the ETH/BTC ratio, altcoins’ market share and flows into exchange-traded funds, or ETFs.

According to Glassnode, around past Bitcoin peaks there were three instances in which altcoins’ market share rose by at least 2.8 percentage points over 90 days. This time, that share has instead fallen by 0.9 percentage point, indicating that a clear sign of capital rotation has yet to emerge.

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Source: en.bloomingbit.io