Bitcoin Dominance Surges to 64% Altcoins Slump

Bitcoin's dominance in the cryptocurrency market has surged above 60%, marking a significant shift in market dynamics. This sustained level indicates a potential market equilibrium, as fluctuations in dominance often correlate with significant shifts in market dynamics. Since the start of 2025, Bitcoin has overshadowed the market, drawing liquidity away from altcoins and leaving them in a prolonged slump. This rise coincided with Bitcoin’s rally, which drew liquidity away from altcoins and reinforced its market dominance.

Bitcoin dominance (BTC.D) has been on a steady uptrend since early 2025, highlighting its strong influence on the crypto market. Starting the year at around 57%, BTC.D gradually climbed, reaching over 64% by early February. After peaking, BTC.D retraced, finding support at 60% and stabilizing near 61.38% in March. The market is at a pivotal moment, if Bitcoin dominance remains around these levels, alts may continue to face challenges. However, a drop below 60% could indicate a shift toward alts, potentially marking the beginning of the long-anticipated altseason.

The Altcoin Seasonality Index has plunged to 18, nearing extreme lows not seen since Bitcoin’s dominance began surging in early 2025. Altcoin metrics peaked in December 2024, aligning with BTC.D’s temporary pullback. However, since then, Bitcoin has absorbed market liquidity, suppressing altcoin performance. Historically, such deep retracements in the index have marked critical inflection points, where oversold conditions pave the way for a shift in capital rotation.

While Bitcoin continues to dictate the trend, the current downturn in altcoin seasonality suggests a potential bottoming-out phase. If sentiment shifts and risk appetite returns, this could set the stage for an impending rebound. Altcoins: Moving forward With the Altcoin Seasonality Index now at 18, traders are watching for signs of a reversal. Previous dips to similar levels in early 2024 and mid-2023 preceded strong alt recoveries. However, for a true shift, Bitcoin dominance needs to show weakness, and liquidity must flow back into altcoins. If altcoins show stronger relative performance compared to Bitcoin, it could signal the beginning of a new phase in the