ALTCOINS KEEP DROPPING WHILE BITCOIN BREAKS ANOTHER RECORD OF MARKET DOMINANCE IN 2018

The cryptocurrency market is a dynamic and often unpredictable beast. If Bitcoin dominance breaks above 62.10%, BTC could extend its rally while altcoins struggle to gain momentum. However, if dominance falls below 60.50%, the market could witness a surge in altcoin performance. The next few days will be critical in determining whether BTC maintains its dominance or if altcoins begin to reclaim market shareIn 2025, the narrative has been dominated by Bitcoin's resurgence. Bitcoin dominance a measure of how much of the crypto market s total value belongs to BTC has rebounded as the asset hit a six-figure all-time high on Dec. 5, while most altcoins failedWhile Bitcoin has been smashing records and solidifying its position as the king of crypto, many altcoins have been struggling to keep pace, facing significant drops and underperformance. But once altcoin dominance found footing at this support, capital rotation into high-beta assets followed with speed. While the broader market fixates on Bitcoin ETFs and narratives, this technical threshold shows that altcoins may be gearing up for another round of outperformance. Altcoins are gaining traction beyond ETHThis divergence raises critical questions: Why is Bitcoin surging while altcoins falter?Is this a temporary trend, or does it signal a fundamental shift in the market? Bitcoin s dominance has dropped below 57%, marking a big moment in the crypto world. This drop, highlighted by a clear downside breakout from a rising wedge pattern, signals the official start of Altseason .The rise of Bitcoin dominance affects the whole crypto landscape and every investor within it.Understanding the factors driving this trend is crucial for navigating the current market conditions and making informed investment decisions. Altcoins, represented by OTHERS.D, have lost ground, and while OTHERS.D needs to hold above 9.82% to maintain market optimism, it hasn't shown the strength to break out of the daily TBO Cloud. This puts us back into a choppy market environment, where altcoins are likely to experience further consolidation and losses until stronger bullishAre we about to witness an ""altseason"" that can turn things around or are we heading towards a bitcoin-dominated crypto sphere?In this article, we'll dissect the elements contributing to this phenomenon, analyze historical data, and explore potential future scenarios for both Bitcoin and the broader altcoin market.By understanding the dynamics between Bitcoin and altcoins, investors can better position themselves to thrive in this ever-evolving landscape.

Understanding Bitcoin Dominance and Its Impact

Bitcoin dominance, often represented as BTC.D, is a metric that indicates the percentage of the total cryptocurrency market capitalization that is attributed to Bitcoin. La mayor a de altcoins tienen n meros rojos, mientras que Bitcoin tiene un soporte de $6200 y rompe un r cord de dominio del mercado en 2025. Noticias Martes, 11 de septiembre: los criptomercados han visto otro declive hoy en d a, con la mayor a de las 20 monedas principales por capitalizaci n de mercado en rojo, seg n datos deA high Bitcoin dominance suggests that Bitcoin is outperforming altcoins, indicating strong investor confidence in Bitcoin as a store of value or safe haven.Conversely, a low Bitcoin dominance often signifies that altcoins are gaining traction and attracting more investment, potentially signaling the start of an ""altseason."" Bitcoin dominance can be used as a signal to anticipate possible altcoins’ season start. CryptoQuant analysts believe altcoin season may be nearing but only if Bitcoin dominance drops. BTC dominance currently sits at 64%, and needs to fall below 54% for altcoins to rally. So far, altcoins have struggled, hitting new lows with each Bitcoin pullback.In the middle of 2025, we see that Bitcoin breaks a record of market dominance.

How is Bitcoin Dominance Calculated?

The calculation is relatively straightforward: it’s the market capitalization of Bitcoin divided by the total market capitalization of all cryptocurrencies, expressed as a percentage.For example, if Bitcoin's market cap is $1 trillion and the total crypto market cap is $2 trillion, Bitcoin dominance would be 50%.

Why Does Bitcoin Dominance Matter?

• Market Sentiment: A rising dominance often indicates confidence in Bitcoin as a store of value or safe haven during market uncertainty. Bitcoin s market dominance has surged past 62%, showing strong investor preference over altcoins. Altcoins are struggling due to lower liquidity, regulatory pressure, and the adoption of BTC by major institutions. Analysts debate whether we should expect a season for altcoins comeback or if Bitcoin will retain its top market title.A drop might suggest increased speculative activity in the broader crypto space, with investors seeking higher returns in altcoins.
• Investment Strategies: Understanding Bitcoin dominance can help investors allocate their portfolios effectively. Historically, altseasons have been triggered when Bitcoin s market dominance declines while investor interest in innovation and niche sectors increases. According to Wedson, we are now nearing that point.A high dominance might favor a Bitcoin-heavy portfolio, while a declining dominance could suggest opportunities in altcoins.
• Altcoin Performance: As highlighted in the snippets, altcoins tend to perform poorly when Bitcoin gains significantly. Leader in cryptocurrency, Bitcoin, Ethereum, XRP, blockchain, DeFi, digital finance and Web 3.0 news with analysis, video and live price updates.Therefore, monitoring Bitcoin dominance is essential for altcoin investors.

Factors Contributing to Bitcoin's 2025 Dominance

Several factors have converged to fuel Bitcoin's impressive rally and subsequent dominance in 2025.

Institutional Adoption

One of the primary drivers is the increasing institutional adoption of Bitcoin. Bullish Altcoins: Bitcoin Dominance In Correction Mode Here BTC.D is still moving within a classic ABC correction. The peak happened 7-May. After 14-May there was a bounce but this bounce ended in a lower high. The correction is not over. As this index moves lower, the Altcoins market will grow. When Bitcoin turns sideways, retraces orMajor institutions are increasingly recognizing Bitcoin as a legitimate asset class, allocating portions of their portfolios to BTC. WHY ALTCOINS ARE STRUGGLING DESPITE BITCOIN S SURGE . While Bitcoin is rallying, most altcoins are still far below their highs. Coins like Ethereum, Solana, BNB, and XRP are down 20% to 75% from their peaks. For example, ETH is around $2,562 about 47.6% below its 2025 high of $4,891.7. Solana is at $171.8, down 41.6%.This institutional interest provides a significant boost to Bitcoin's price and market capitalization, contributing to its dominance.

Bitcoin ETFs and Regulatory Clarity

The introduction of Bitcoin ETFs has further legitimized Bitcoin and made it more accessible to a wider range of investors.These ETFs provide a regulated and convenient way for institutional and retail investors to gain exposure to Bitcoin without directly holding the asset. A higher dominance percentage signals a Bitcoin-driven market, while a lower dominance percentage often indicates that altcoins are gaining more attention. Key Takeaways on Bitcoin Altcoin Dominance: Bitcoin has historically maintained higher market dominance, but altcoins have shown potential for market cycles of outperformance.Furthermore, increased regulatory clarity surrounding Bitcoin, while still evolving, has reduced uncertainty and encouraged more investment.

Bitcoin as a ""Safe Haven"" Asset

In times of economic uncertainty or geopolitical instability, Bitcoin is increasingly viewed as a ""safe haven"" asset, similar to gold.Investors flock to Bitcoin as a store of value, driving up its price and dominance.This perception has been reinforced by Bitcoin's limited supply and decentralized nature.

Short Squeezes and Liquidations

Bitcoin's price surges have often been amplified by short squeezes.When Bitcoin breaks through key resistance levels, traders who have bet against Bitcoin (short positions) are forced to cover their positions, driving the price even higher. This dominance shift is to be expected, as Bitcoin often leads the market in major rallies, while altcoins struggle to keep up. Bitcoin s dominance increased notably after breaking above a significant wall of over $10 billion in short positions, creating the first major short squeeze liquidation event in this rally.This creates a feedback loop that further increases Bitcoin's dominance.

Why Are Altcoins Struggling?

While Bitcoin has been soaring, many altcoins have been struggling to keep up. Historical Bitcoin Dominance Signal Possible Altcoin Season. Crypto analyst Luca on X (formerly Twitter) is questioning whether history is repeating itself as similar past market trends emerge in this current cycle. The analyst shared two parallel charts, tracking the Bitcoin Dominance market capitalization and the start of the altcoin season.Several factors contribute to this underperformance.

Lower Liquidity and Volatility

Altcoins generally have lower liquidity compared to Bitcoin, making them more susceptible to price swings and volatility.During periods of market uncertainty, investors often flock to Bitcoin for its relative stability, leaving altcoins behind.

Regulatory Pressure

Many altcoins face greater regulatory scrutiny than Bitcoin. A high Bitcoin dominance indicates that Bitcoin is outperforming other altcoins, while a low Bitcoin dominance means altcoins are taking the lead. Resistance and Support Levels for Bitcoin BTC.D is now facing resistance at 59.7%, a significant barrier to further upward movement.Regulators are still grappling with how to classify and regulate altcoins, creating uncertainty and hindering their adoption.

Lack of Institutional Interest

While Bitcoin is attracting significant institutional interest, most altcoins have yet to achieve the same level of recognition. In another wave of red, Bitcoin still continues gaining momentum in terms of market share, demonstrating a significant growth in its dominance over the altcoins. The percent of Bitcoin s dominanceInstitutional investors tend to favor Bitcoin due to its established track record and larger market capitalization.

The ""Bitcoin First"" Mentality

During bull markets, a ""Bitcoin first"" mentality often prevails.Investors prioritize Bitcoin, viewing it as the safest and most established cryptocurrency. Bitcoin s rise in market dominance often spells trouble for alternative cryptocurrencies (altcoins), which tend to perform poorly when Bitcoin gains significantly. On the day in question, while Bitcoin appreciated by 2.5%, most altcoins remained flat or declined in value, highlighting the inverse relationship between Bitcoin s gains andOnly after Bitcoin has reached a certain level of maturity do investors begin to explore altcoins.

Analyzing Historical Bitcoin Dominance and Altcoin Seasons

Historical data provides valuable insights into the relationship between Bitcoin dominance and altcoin performance.

Past Trends

Historically, Bitcoin has maintained a higher market dominance for most of the crypto market's existence. Altcoins Are Ready For Big Drop Hello, Skyrexians! It's very important when BTC, USDT and CRYPTOCAP:OTHERS.D dominances analysis perfectly matches with each other. I bet for Bitcoin and Tether dominance growth in the upcoming weeks and dump for altcoins. Let's take a look at the 2 days time frame. Price was not even able to reHowever, there have been periods, often referred to as ""altseasons,"" where altcoins have outperformed Bitcoin.These altseasons typically occur when Bitcoin dominance declines and investor interest in innovation and niche sectors increases.

The 2025 Bear Market Comparison

Looking back to the bear market of 2025, we see a sharp drop in Bitcoin dominance due to the rise of Ethereum and the ICO boom it enabled.Investors flocked to every ""next big thing,"" and Bitcoin dominance fell to an all-time low.It is important to consider that the conditions surrounding previous altseasons may not perfectly align with the current market dynamics.

Key Levels to Watch

Analysts often monitor specific Bitcoin dominance levels to gauge potential shifts in market sentiment. Bitcoin s market dominance has surged to nearly 60%, reaching a four-year high as Ethereum and altcoins continue to underperform. Bitcoin s market dominance has surged to nearly 60%, reachingFor example, if Bitcoin dominance breaks above 62.10%, BTC could extend its rally while altcoins struggle.Conversely, if dominance falls below 60.50%, the market could witness a surge in altcoin performance.CryptoQuant analysts believe altcoin season may be nearing but only if Bitcoin dominance drops.BTC dominance currently sits at 64%, and needs to fall below 54% for altcoins to rally.

Is an Altseason Imminent?

The question on every altcoin investor's mind is: Is an altseason on the horizon? In order for an altcoin rally to come into effect, BTC dominance needs to drop. Mainstream altcoins like Lido DAO (LDO), EigenLayer (EIGEN), Dogecoin (DOGE), and Chainlink (LINK) dropped sharply in the last 24 hours as Bitcoin dominance surged to 56.5%. Bitcoin (BTC) itself fell 2.5% to $103,900, following a record high of $108,268 earlier thisWhile there are no guarantees, several factors suggest that an altseason could be possible, though not necessarily in 2025.

Factors Favoring an Altseason

• Bitcoin Consolidation: Historically, altseasons have been triggered when Bitcoin's market dominance declines or when Bitcoin turns sideways.As this index moves lower, the Altcoins market will grow. Crypto assets faced another rough day as bitcoin (BTC) slipped below the $97,000 mark, dragging several altcoins deeper into the red. Crypto assets faced another rough day as bitcoin (BTCWhen Bitcoin turns sideways, retraces
• Increased Market Liquidity: Increased market liquidity, and growing institutional interest are conditions for an alt season
• Rising Altcoin Performance: Altcoins are gaining traction beyond ETH Historically, altseasons have been triggered when Bitcoin's market dominance declines while investor interest in innovation and niche sectors increases.
• Extreme Greed Sentiment: Extreme Greed sentiment on the Crypto Fear and Greed Index signals a potential Bitcoin price correction, opening doors for altcoin breakouts.

Factors Against an Altseason

• Bitcoin's Continued Strength: As of now, Bitcoin maintains strong momentum.If Bitcoin dominance continues to rise, altcoins may continue to struggle.
• Regulatory Uncertainty: Ongoing regulatory uncertainty surrounding altcoins could dampen investor enthusiasm.
• Lower Liquidity: The lower liquidity of altcoins compared to Bitcoin can amplify price swings, making them riskier investments during volatile market conditions.

Strategies for Navigating the Current Market

Given the current market conditions, investors need to adopt a strategic approach.

Diversification

Diversification remains a cornerstone of prudent investment.While Bitcoin may be the dominant force, allocating a portion of your portfolio to carefully selected altcoins can potentially enhance returns.However, diversification does not guarantee profits and carries the risk of loss.

Due Diligence

Thorough research is essential before investing in any altcoin.Understand the project's fundamentals, team, technology, and market potential. Bitcoin dominance drops to 60%, fueled by rising altcoin performance, including Bonk and XRP, and a growing altcoin season index of 39. Extreme Greed sentiment on the Crypto Fear and Greed Index signals a potential Bitcoin price correction, opening doors for altcoin breakouts.Look for altcoins with strong use cases, active communities, and experienced development teams.

Risk Management

Implement robust risk management strategies, including setting stop-loss orders to limit potential losses. Altcoins struggle to catch up as Bitcoin s market dominance hits a three-year high. While Bitcoin has seen a 4% increase, altcoins have remained mostly stagnant or have declined. Analysts suggest that changes in Bitcoin dominance will soon boost the altcoin markets. Bitcoin s dominance, measured as BTC.D, has soared to 58.89%, marking itsGiven the volatility of the crypto market, it's crucial to protect your capital.

Dollar-Cost Averaging (DCA)

Consider using dollar-cost averaging (DCA) to gradually build your positions over time. Bitcoin Dominance Slips for the First Time in Months. While Bitcoin s price is rising, its dominance in the market is beginning to slip. After two months of steady growth, Bitcoin dominance (BTC-D) dropped from 65.36% on May 7 to 63.69% today. That s a 2.5% decline and it could be an early signal of a trend reversal.DCA involves investing a fixed amount of money at regular intervals, regardless of the price. Market Sentiment: A rising dominance suggests confidence in Bitcoin as a store of value or safe haven, while a drop may indicate increased speculative activity in the broader crypto space.This can help mitigate the impact of market volatility.

Staying Informed

Stay up-to-date with the latest news and developments in the crypto market.Monitor Bitcoin dominance, regulatory changes, and altcoin project updates.Informed investors are better equipped to make sound decisions.

Examples of Altcoins Showing Potential

Even in a Bitcoin-dominated market, some altcoins are showing resilience and potential.It's important to note that these are just examples, and investors should conduct their own research before making any investment decisions.

• Ethereum (ETH): Remains the leading smart contract platform and a key player in the DeFi and NFT spaces.
• Solana (SOL): Known for its high transaction speeds and scalability, Solana is gaining traction in the DeFi and NFT ecosystems.
• Chainlink (LINK): A decentralized oracle network that provides real-world data to smart contracts, essential for many DeFi applications.
• Polkadot (DOT): A multi-chain platform that enables different blockchains to interoperate, offering a solution to blockchain fragmentation.

Common Questions About Bitcoin Dominance and Altcoins

What is considered a high Bitcoin dominance?

Generally, a Bitcoin dominance above 60% is considered high, indicating that Bitcoin is outperforming altcoins.

What is considered a low Bitcoin dominance?

A Bitcoin dominance below 50% is often considered low, suggesting that altcoins are gaining market share.

Can Bitcoin dominance stay high indefinitely?

While Bitcoin dominance has historically been high, it's unlikely to remain so indefinitely. In 2025, there was a sharp drop in Bitcoin dominance due to the rise of Ethereum and the ICO boom it enabled. Investors flocked to every next big thing, and by the end of the bull run around the start of 2025, Bitcoin dominance had fallen to an all-time-low of around 38%. Bitcoin Dominance During 2025 s Bear MarketMarket dynamics are constantly evolving, and new trends and technologies can shift investor preferences.

Is it always bad when Bitcoin dominance is high?

Not necessarily. However, even though conditions for an alt season such as Bitcoin stability, increased market liquidity, and growing institutional interest are present, the shift has not happened as expected. Why Bitcoin s Dominance Keeps Rising. Several key factors are driving Bitcoin s growing dominance:A high Bitcoin dominance can indicate a flight to safety during market uncertainty, with investors seeking the relative stability of Bitcoin.

How can I track Bitcoin dominance?

Bitcoin dominance can be tracked on various cryptocurrency data platforms, such as CoinMarketCap, CoinGecko, and TradingView.

Conclusion

The cryptocurrency market in 2025 presents a complex landscape with Bitcoin breaking records while altcoins struggle.Understanding Bitcoin dominance, its drivers, and its impact on altcoins is crucial for investors navigating this dynamic environment.While Bitcoin's dominance may present challenges for altcoin investors, it also creates opportunities for strategic portfolio allocation and informed decision-making.As conditions shift, staying informed and adapting strategies are key to navigating the volatile crypto market.As highlighted by analysts, changes in Bitcoin dominance will soon boost the altcoin markets.By embracing diversification, conducting thorough research, and implementing robust risk management practices, investors can position themselves to thrive regardless of whether it is Bitcoin season or Altseason.Remember to keep a close eye on Bitcoin dominance levels, regulatory developments, and emerging trends to make informed decisions and capitalize on potential opportunities in the ever-evolving crypto landscape.The critical level to watch remains the 60% mark for Bitcoin dominance.A break below could signal the start of an altcoin rally, while holding above it could mean continued Bitcoin dominance.