Altcoin Profits Lure Traders, Dwindle Bitcoin's Share in Crypto Futures

• Decrease in Bitcoin's Dominance in Futures Market
• Shift of Investment to Altcoins
• Bitcoin's Performance and Surge
• Decline in Bitcoin's Dominance by Open Interest

Decrease in Bitcoin's Dominance in Futures Market

As 2023 comes to an end, cryptocurrency traders are progressively shifting their focus towards alternative cryptocurrencies. Bitcoin$42,260 -0.64%'s dollar value locked in active futures contracts now comprises 38% of the market-wide notional futures open interest of $30.45 billion. This percentage represents the lowest in a minimum of two years, based on data monitored by Coinalyze.

Shift of Investment to Altcoins

Coinalyze states that the majority of investments seem to be flowing into alternative cryptocurrencies at the moment. This shift indicates a decline in Bitcoin's dominance by open interest in futures. There is a rekindled risk appetite in the cryptocurrency market, usually seen after a significant uptrend in Bitcoin.

Bitcoin's Performance and Surge

Bitcoin remains the top cryptocurrency by market value, having seen an over 60% surge to $43,100 since October 1. This increase is largely attributed to falling Treasury yields and the anticipation that the U.S. Securities and Exchange Commission will soon approve one or more spot BTC exchange-traded funds (ETFs). As of this moment, Bitcoin's year-to-date increase sits at 161%, while Ethereum$2,315 -2.42%, the second-largest cryptocurrency, has seen an 88% rise in trade value.

Decline in Bitcoin's Dominance by Open Interest

Over the last two months, Bitcoin's dominance by open interest has seen a decline from almost 50% to 38%. However, Ethereum's dominance remains relatively stable at around 21%. The percentage of altcoins, on the other hand, has risen from 32% to 41%.

Edited by Jonathan Stoker