Bitcoin [BTC] is leading the crypto markets as the break above $10,000 sets in altcoins gains again as well. Moreover, Ethereum has been particularly bullish since the beginning of this year.
On BitMEX, the funding rate on Ethereum and XRP is comparitively higher than Bitcoin [BTC]. This might be due to the fact that in a crypto market, the altcoins usually gain above Bitcoin as well.
The systematic risk of altcoins over Bitcoins considerably higher, so is the risk-reward ratio. Hence, traders might be inclined towards trading altcoins, instead of Bitcoin. Price pulled back from lows at $240 strongly. Nonetheless, it also failed to break above the swing high around $290.
Bitcoin and Ethereum Funding Rate History on BitMEX
The gains in 2020 in the markets reflect a similar situation. While the gains in Bitcoin are nearly 40%, the comparative gain in Ethereum and Bitcoin Cash [BCH] are over 3 times (around 120%). The gains in Litecoin (90%) and XRP (50%) have been higher as well.
However, during the bear market of 2020 the dominance of altcoins increased considerably.
BTC, XRP, LTC, ETH, BCH Comparative Gains in 2020 (TradingView)
Moreover, some of the other cryptocurrencies with hefty gains are Tezos and Link. Prominent crypto trader, Josh Rager tweeted,
Altseason? More like $LINK $XTZ $ETH season
Crypto trader, CryptoFibonacci tweeted on the prospects of already have a bottom in Bitcoin’s dominance or looking for downside up to 60%.
$BTC Daily Dominance Chart. Bottom here, or do we test that uptrend line?