The Shocking Truth About Bitcoin’s Growing Dominance and What It Means for Altcoins

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It seems that the mighty Bitcoin is once again strutting its stuff in the crypto world. After dipping down to a modest 40% dominance in November 2022, Bitcoin has been on an upward trajectory, reaching a staggering 64% market share this April. Imagine that: nearly two-thirds of the entire crypto market is now controlled by Bitcoin. While some still hold out hope for the long-anticipated “altcoin season,” others are boldly declaring that such a season may never come again. They say this cycle is different. And maybe, just maybe, they’re right. 🧐

Bitcoin dominance is nearing 64%, a level last seen at the peak of the 2020 bear market.

This isn’t just Bitcoin’s move. It’s capital rotating out of altcoins.

Historically, this has been a pivotal point. If it crosses 66%, altcoins might bleed harder before a true altseason.
Watch closely 👀

— nordin.eth (@nordin_eth) April 17, 2025

What Does Bitcoin Dominance Really Mean?

For those who might still be scratching their heads, Bitcoin dominance is a simple metric. It tracks the share of Bitcoin in the total cryptocurrency market cap. Back in the day, when Bitcoin was the only game in town, it enjoyed a 100% dominance. But as the crypto world expanded, so did the competition. In 2017, Ethereum and a wave of ICOs started chipping away at Bitcoin’s glory, sending its dominance tumbling from 96% to below 40% by 2018. From 2018 to 2020, Bitcoin’s share danced unpredictably. In 2021, it dropped even further, hovering between 40% and 70% as decentralized finance (DeFi) and NFTs surged.

It might appear that Bitcoin dominance is just a reflection of market trends, but in reality, it’s a tool used by traders and investors to gauge the mood of the market. A falling dominance was once seen as a sign of a crypto rally, with traders betting on altcoins. A high dominance, however, indicated a bear market, where investors flocked to the safety of Bitcoin. Yet, some experts argue that this cycle may not follow the usual script. 😏

Is the Altcoin Season Coming?

The mantra “Bitcoin, not crypto” — beloved by the Bitcoin maximalists — seems to be capturing the prevailing sentiment in the market. Scott Melker, host of the Wolf of All Streets, recently described the Bitcoin-Altcoin relationship as a “washing machine,” where value endlessly circulates between the two assets, with fresh capital coming in. However, in this new cycle, some investors aren’t rushing to sell Bitcoin. Instead, they’re hoarding it, convinced that Bitcoin is the ultimate store of value. The result? Bitcoin’s dominance grows, while altcoins slowly fade into the background.

Interestingly, governments and corporations are also buying Bitcoin in droves, pumping fresh dollars into the market. This new money isn’t coming from trading altcoins — it’s straight-up fiat. And once Bitcoin gets those dollars, no one seems eager to part with them. As a result, Bitcoin continues to gain dominance, leaving altcoins in the dust. And as Melker aptly puts it, “altcoins are bleeding against BTC because holders are selling to pay bills, not to rotate into Bitcoin.” 💸

The ever-insightful Benjamin Cowen also weighed in on this trend, pointing out that Bitcoin dominance is at 69% if you exclude stablecoins. When asked about the possibility of an altcoin season, he shared a chart that suggested altcoins would need to decline further before they could rise again. 💀

I think #ALT / #BTC pairs need to go down before they can go up

— Benjamin Cowen (@intocryptoverse) April 16, 2025

Despite all the doom and gloom surrounding altcoins, there are still some who cling to the belief that an altseason is just around the corner. The logic behind those who believe altcoins are doomed does seem convincing, but it’s not entirely without merit to believe that altcoins may still have their time in the sun. 🌞

After all, predicting the future of the crypto market is like trying to predict the weather in Siberia. New trends, like DeFi or NFT surges, could trigger another wave of altcoin excitement. It all depends on how the market develops and how new technologies capture the public’s imagination. What was once the hot trend can always be replaced by something newer and shinier.

Let’s not forget that Bitcoin dominance has risen before, in 2018 and 2019, only for altcoins to surprise everyone and make a comeback. This isn’t the first time that Bitcoin is holding the spotlight, and it won’t be the last.

For now, Bitcoin reigns supreme. But who knows? By 2028, we might have a new crypto king, and Bitcoin’s dominance could dip below 50% once again. 😎

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2025-04-23 15:25