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Bitcoin is showing signs of massive rally as it recently breached $93,000. With Bitcoin breaking its previous all-time highs, the market is entering a critical phase, and traders are closely watching for new signals that could influence price movement.
Aaron Arnold, co-host of Altcoin Daily, believes that Bitcoin is entering an exciting phase after breaking its previous all-time high.In an interview with David Lin,he said that historically, when this happens, Bitcoin often sees big gains over the next 9 to 12 months. With Bitcoin now surpassing its old record, Arnold thinks we’re in for a strong rally.
However, Arnold also warns about the risks. When Bitcoin’s price goes up, people often rush to buy, fearing they’ll miss out. This happened in 2021 when many people bought Bitcoin near its peak of $67,000, only to see the price drop afterward. Arnold advises that new investors should be cautious, as Bitcoin’s price can dip 30-40% even during bull markets before rising again.
Understanding Bitcoin’s Dominance
When asked about Bitcoin’s dominance in the crypto market, especially as meme coins like Dogecoin gain popularity. He explained that while Bitcoin dominance is still increasing, it might be nearing its peak.
Historically, after Bitcoin breaks new all-time highs, there’s often a shift in dominance, with Bitcoin’s share of the market dropping as altcoins gain momentum. Arnold expects that a similar “shakeout” in Bitcoin dominance will happen soon, possibly leading to altcoins seeing big rallies again, similar to what happened in 2017 and 2021.
He compared the current market situation to 2021, when Bitcoin dominance dropped sharply and altcoins exploded in value. If dominance drops similarly again, it could signal that retail investors will return to altcoins and the market will hit a new euphoric phase.
Arnold said that if Bitcoin’s dominance doesn’t fall as dramatically, or if the drop happens more slowly, it wouldn’t be a major problem—it’s just part of the natural market cycle. He said that the fundamentals of crypto, especially Bitcoin, remain strong.