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Bitcoin’s market dominance has reached a new all-time high as it continues to strengthen at the expense of altcoins. As of September 16, Bitcoin’s market dominance rose to 58%. This is the highest level since April 2021 and has been steadily increasing for the past two years.
After the FTX crash in November 2022, BTC dominance fell below 40% and the subsequent bear market pushed Bitcoin to $16,000. However, since then, BTC dominance has been on an upward trend and BTC’s market share has increased, especially as altcoins like Ethereum have been losing market share.
Ethereum’s dominance has fallen below 14% for the first time this week, a three-and-a-half-year low, after falling by 30% in the past year. This further increased Bitcoin’s market share.
Will Bitcoin Dominance Decline?
On September 16, analyst ‘Rekt Capital’ noted that Bitcoin’s market dominance had closed at 57.68% for the week, marking the first time it had broken above a major support/resistance level since April 2019. The analyst said that the last time such a close occurred, it started a multi-month uptrend in Bitcoin dominance, reaching as high as 71%.
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In early 2021, BTC dominance hit 70%, but it quickly fell to 40% during that year’s altcoin season. Some analysts, however, suggest that Bitcoin dominance has peaked and a pullback could kick off an altcoin season this cycle.
Analyst ‘Cryptollica’ told his 30,000 X followers that Bitcoin’s dominance could fall to 35% by mid-2025. Similarly, crypto YouTuber Kyle Doops stated in a post on September 17 that this significant change will affect market trends and could shape the altcoin season.
Steven Cook, founder and CIO of Dira Capital, stated that despite the recent discussions on Bitcoin dominance, this movement is close to completion. Cook predicted that BTC dominance could rise above 60% for a few more months, but added that assessments on this should have been made approximately two years ago.
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