Bitcoin’s Dominance Is Falling—But Don't Count on Altcoin Season Yet, Analysts Say
Bitcoin's market cap exceeds $2 trillion, with a dominance of approximately 63.5% among the top 125 cryptocurrencies. Analysts suggest that despite recent gains in altcoins like Ethereum, which surged 36% to around $2,485, Bitcoin's dominance may not decline significantly due to ongoing macroeconomic uncertainties. Historical trends indicate that Bitcoin's dominance typically falls when traders shift to riskier altcoins after price peaks. However, the approval of spot Bitcoin ETFs could alter this dynamic. Analysts predict Bitcoin's dominance will plateau between 60% and 70% over the next nine to twelve months. Factors such as a 90-day tariff pause by Trump and lower inflation are increasing investor risk appetite, benefiting altcoins. Lower interest rates also support risk assets, including cryptocurrencies.