Bitcoin Dominance Drops to 60 Altcoins Poised for Recovery

Bitcoin’s dominance in the cryptocurrency market has been a defining characteristic of 2025, with its market share rising from approximately 57% at the start of the year to over 64% by early February. This surge in Bitcoin’s dominance has drawn considerable liquidity away from altcoins, showcasing Bitcoin’s undeniable market clout. However, the recent slight retracement of Bitcoin’s dominance, hovering around the 60% mark into March, has raised crucial questions about the future direction of altcoins.

Analysts are noting that the Altcoin Seasonality Index has reached levels not seen since late 2024, suggesting that a recovery may be on the horizon. The dramatic plunge of the Altcoin Seasonality Index to just 18 is a critical indicator, reflecting extreme oversold conditions reminiscent of earlier Bitcoin dominance phases. Since the highs in December 2024, altcoins have struggled under the weight of Bitcoin’s liquidity draw, suppressing their performance.

Historically, extreme contractions in this index have been significant inflection points, where oversold environments set the stage for renewed capital influx into altcoins. As long as Bitcoin maintains its current dominance, altcoins may still face challenges, but the latest downturn hints at a potential bottoming out—a cue for future liquidity shifts if market sentiment improves.

With the Altcoin Seasonality Index currently resting at an alarming 18, market participants are on alert for signs that a recovery could be imminent. Previous occurrences of such low readings in early 2024 and during mid-2023 often preceded notable altcoin recoveries. For a true shift to materialize, however, Bitcoin must exhibit signs of weakness in dominance, allowing liquidity to flow back towards altcoins. If altcoins can outperform Bitcoin, this could signal the initiation of a relief rally, offering opportunities for investors.

Nonetheless, caution remains advisable as ongoing regulatory developments and external market factors continue to shape the landscape. That being said, the current condition of oversold altcoins positions them well for a potential recovery in the near future. The crypto landscape in 2025 has been largely influenced by Bitcoin’s overwhelming dominance, yet current market indicators such as the Altcoin Seasonality Index suggest arriving at a pivotal moment for altcoins. If significant changes in Bitcoin dominance occur, traders