Major cryptocurrencies traded in the red on Wednesday night as the global cryptocurrency market capitalization fell 0.92% to $2.16 trillion.
What Happened: Bitcoin (CRYPTO: BTC) traded 0.99% lower at $47,537.64 over 24 hours. For the week, BTC has fallen 1.95%.
See Also: How To Buy Bitcoin (BTC)
Ethereum (CRYPTO: ETH) was down 1.51% at $3,541.72 over 24 hours. Over a seven-day period, ETH has risen 2.34%.
Meme cryptocurrency Dogecoin (CRYPTO: DOGE) was down 2.36% at $0.24 over 24 hours. Over the last seven days, DOGE has declined 5.74%.
The top gainer over 24 hours on Wednesday was Shiba Inu (CRYPTO: SHIB), which soared 24.01% to $0.00000835. Over the last seven days, SHIB has risen 12.92%.
Against BTC and ETH, SHIB has risen 24.83% and 25.10% respectively.
Other notable gainers over 24 hours included Audius (CRYPTO: AUDIO), Cosmos (CRYPTO: ATOM), and Avalanche (CRYPTO: AVAX).
AUDIO shot up 23.67% to $2.89, ATOM was up 10.33% to $36.28, while AVAX rose 7.98% to $66.13.
Why It Matters: Analysts are of the view that it is altcoin season as the apex cryptocurrency was outperformed by such coins.
“It’s definitely altcoin season,” said Martha Reyes-Hulme, reported CoinDesk.
“BTC dominance (BTC market cap relative to the total cryptocurrency market cap) could easily pick up again, but certainly DeFi could continue – we see it on the front line in terms of client interest.”
Bitcoin dominance stood at 41.6% at press time, according to CoinMarketCap data.
Lukas Enzersdorfer-Konrad, Chief Product Officer at Bitpanda, said in an emailed note that the so-called “Bitcoin Day” — a reference to El Salvador adopting BTC as legal tender — ”resulted in pain” for BTC bulls.
“BTC’s market dominance has also declined to 40% as most altcoins have recovered faster,” wrote Enzersdorfer-Konrad.
“Bitcoin is leading the market and moving in a thin range between its support and resistance line after the selloff. Its daily candles are still volatile as the market is trying to find new levels of demand. Most altcoins are simply following BTC’s candlesticks as well.”
Enzersdorfer-Konrad said that over a higher time frame the market appears bullish but it needs more time to recover.