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ZyCrypto 2025-02-01 18:38:05

Bitcoin Market Share Hits 58% as Altcoin Drives Falter

Bitcoin dominance continued to rise amid anticipation of an altcoin season at the start of the year. The crypto market has faced harsh headwinds in the last two weeks, reshaping whale holdings and asset dominance. This stems from a flurry of macro factors as global politics intensify crippling digital assets. Overall, the wider crypto market cap is above $3.5 trillion following Bitcoin’s recovery. BTC Price Outpaces Altcoins On-chain data shows Bitcoin dominance stands at 58% and is projected to hit 60% after trades in the last two weeks. The dominance index points to a 15% decline in most altcoins compared to the market leader. Bitcoin has risen by 55% in the last three years compared to several altcoins. This gain comes despite anticipated fund transfer to other assets after Trump’s inauguration. Last year, most crypto users projected an altcoin season with historical data. After a sharp increase in BTC price, altcoins tend to perform better once Bitcoin hits a cycle peak. Shaky trades and more investor appetite in BTC have spiked its dominance while altcoins struggle. Ethereum, an asset projected to ignite the season, continued a sideways pattern for the last two to three quarters, even after the approval of spot Ethereum ETFs. ETH price trades at $3,219, dropping below the $3.5K after bulls anticipated a run to $5K. This was heightened by XRP’s stellar climb above $3 with billions in its market cap. Notably, Solana and Cardano also made significant gains last quarter with a similar rise in decentralized finance (DeFi) trading volumes. “… Many experts, including myself, predicted that January 2025 would mark the official start of the altcoin season, especially after #Trump inauguration. But now, as the month comes to a close, we still haven’t seen any significant movement… Over the past two years, Bitcoin has surged by more than 500%, yet Ethereum hasn’t even surpassed its previous ATH. And historically, Ethereum leads the altcoin season,” mrgibenny wrote on X. Institutional Traders Back Bitcoin Among the factors behind the BTC price surge, large-scale market players top the list. Following the approval of spot Bitcoin ETFs , the asset’s pitch has maintained an upward momentum. Tapping $73K in Q1 2024, it broke $93K after Donald Trump’s election win in November and eventually crossed $107K before the recent corrections. The inflow of funds and confidence in clearer regulations in the country led to more investors backing the market leader above other assets. Moves to pass a Strategic Bitcoin Reserve Bill in Congress and similar efforts in states result in a higher Bitcoin dominance.

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