Sharp Drop in Mainstream Altcoins LDO and EIGEN: Bitcoin Dominance To Blame?

LDO and EIGEN crashed almost 8% in the past 24 hours.
Bitcoin dominance skyrocketed after BTC broke $108K for the first time.
In order for an altcoin rally to come into effect, BTC dominance needs to drop.

Mainstream altcoins like Lido DAO (LDO), EigenLayer (EIGEN), Dogecoin (DOGE), and Chainlink (LINK) dropped sharply in the last 24 hours as Bitcoin dominance surged to 56.5%. Bitcoin (BTC) itself fell 2.5% to $103,900, following a record high of $108,268 earlier this week.

This altcoin price decline reflects the growing dominance of Bitcoin, which often leads to altcoin losses in the short term. Analysts predict this trend may reverse soon, potentially sparking an altseason.

Bitcoin’s Dip Drags Down Altcoins, But Some Remain Buoyant

Bitcoin’s dip dragged down several altcoins, including LDO, which fell 8% to $2.07; EIGEN, plunging 8.37% to $5.05; LINK, dropping 3% to $27.51; and DOGE, nosediving 3.3% to $0.3866, according to CoinMarketCap data. However, Pudgy Penguins (PENGU) and Litecoin (LTC) bucked the trend, with PENGU soaring 505% and LTC rising 5%

Crypto YouTuber Crypto Rover noted on X that altcoins are mirroring a pattern from the previous cycle. Bitcoin’s dominance is peaking and then slowly declining. The current BTC dominance is 56.5%. As dominance decreases, Bitcoin enters a consolidation phase, which precedes the altseason.

Another analyst, “Sensei,” who has been investing in crypto since 2018, predicted on X that altcoins are poised for a surge. The 100-day simple moving average and the 150-day simple moving average just formed a golden cross on the weekly crypto market cap excluding Bitcoin chart. This is a bullish signal for altcoin prices.

Bleeding Altcoins

It’s worth noting that Bitcoin’s dominance increased after its recent all-time high, causing altcoins to fall. Generally, during altseason, if Bitcoin dominance increases, altcoins crash, and vice versa.

Looking ahead, another crypto analyst suggests that Bitcoin dominance might jump one last time to 58%-59%, triggering significant altcoin crashes. But this could set the stage for altcoin price surges as BTC dominance corrects.

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