Bitcoin Dominance Hits 3-Year High, But Why Are Altcoins Still Struggling?
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Bitcoin’s dominance in the crypto market has surged to 58.8%, up from 51% in December, reaching its highest level since early 2021. This means Bitcoin is tightening its grip. Normally, when Bitcoin stabilizes after a rally, altcoins take the spotlight as investors look for bigger returns. But this time, that shift isn’t happening. So, what’s keeping altcoins from their usual breakout? And will Bitcoin’s dominance continue to grow, or is a turning point ahead? Let’s break it down. Why Has Altcoin Season Not Arrived Yet? Many investors have been waiting for an altcoin season, a period when altcoins see massive gains, typically following a Bitcoin rally. Usually, when Bitcoin stabilizes after a strong surge, traders take profits and move their funds into riskier altcoins with higher potential returns. 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: Institutional buying – Companies like Strategy continue to accumulate Bitcoin, keeping buying pressure high. Market dilution – The launch of many new tokens is spreading investor interest across a wider range of cryptocurrencies instead of concentrating on established altcoins. Spot Bitcoin ETFs – The introduction of spot Bitcoin ETFs has made it easier for traditional investors to buy Bitcoin, while most altcoins do not have the same level of accessibility. When Ethereum ETFs were approved last year, many expected them to reduce Bitcoin’s dominance. While these ETFs attracted strong initial interest, they failed to drive a broader altcoin rally. This suggests that an alt season may still be coming, just later than anticipated. Also Read : Ethereum Over Bitcoin at BlackRock: Could a $3000 Rally Be Next? …
Filed under: News - @ March 29, 2025 10:22 am