On November 17, 2020, Bitcoin (BTC) surged past the $17,000 mark, reaching a new 2020 all-time high and pushing its market capitalization to approximately $315 billion. Meanwhile, Bitcoin dominance rose to 65%, the highest level in over a year. Unlike the 2017 bull run, when altcoins rallied in tandem, this time most alternative cryptocurrencies have failed to keep up, trading significantly below their prices from three years ago.
Historical Comparison: 2017 vs. 2020
On December 17, 2017, Bitcoin hit its previous all-time high of $19,600, while Bitcoin dominance stood at just 32%. By January 2018, dominance had fallen to an all-time low of 32%. Since then, it has rebounded by 103%. For instance, Ethereum (ETH) traded at $719 on December 17, 2017. Despite a 256% gain in 2020, ETH is still 34% below that level and needs to rise over 67% to reclaim its ATH of $1,431. XRP was $0.72 on that day in 2017, now down 58%, and remains 92% below its ATH of $3.84. Litecoin (LTC) traded at $318 in December 2017; it is currently down 77%, requiring an 80% gain to reach its ATH of $375. Bitcoin Cash (BCH) was priced at $1,862 then, now at $252 — down 86%. Cardano (ADA) was $0.51, now down 78%, and 91% below its $1.33 ATH.
Stablecoin USDT’s Meteoric Rise
One notable shift is the growth of Tether (USDT). On December 17, 2017, USDT ranked 24th by market cap; today it is the third-largest cryptocurrency with a market cap of $17.9 billion, representing a 1,527% increase. The stablecoin’s massive market cap now acts as a drag on Bitcoin dominance, as capital that might otherwise flow into altcoins is parked in USDT.
Market Structure Shifts
The top-ten list has also changed significantly. IOTA, Dash, and Monero have been replaced by Polkadot, Chainlink, and Binance Coin. While some traders on social media proclaim “altseason is here,” many analysts remain skeptical. Crypto analyst “Altcoin Sherpa” tweeted: “Money definitely seems to be leaving alts in general. The high time frame trends on those are still bearish IMO, not altseason quite yet.” Others observed a capital rotation pattern: from altcoins to Bitcoin to USDT, which keeps BTC elevated while altcoins stagnate.