Bitcoin Dominance Surges to 58% as Altcoins Struggle
Bitcoin's market share has surged to 58% as altcoins struggle, according to on-chain data. This rise comes despite expectations of an altcoin season at the start of the year. The crypto market has faced headwinds in recent weeks, reshaping whale holdings and asset dominance. Bitcoin's dominance is projected to hit 60% after trades in the last two weeks, with most altcoins declining by 15% compared to the market leader.
Bitcoin has risen by 55% in the last three years, outpacing many altcoins. This gain comes despite anticipated fund transfers to other assets after Trump's inauguration. Last year, many crypto users projected an altcoin season, with historical data suggesting that after a sharp increase in BTC price, altcoins tend to perform better once Bitcoin hits a cycle peak. However, shaky trades and more investor appetite in BTC have spiked its dominance while altcoins struggle.
Ethereum, an asset projected to ignite the season, continued a sideways pattern for the last two to three quarters, even after the approval of spot Ethereum ETFs. ETH price trades at $3,219, dropping below the $3.5K after bulls anticipated a run to $5K. This was heightened by XRP's stellar climb above $3 with billions in its market cap. Notably, Solana and Cardano also made significant gains last quarter with a similar rise in decentralized finance (DeFi) trading volumes.
Many experts predicted that January 2025 would mark the official start of the altcoin season, especially after Trump's inauguration. However, as the month comes to a close, we still haven't seen any significant movement. Over the past two years, Bitcoin has surged by more than 500%, yet Ethereum hasn't even surpassed its previous ATH. Historically, Ethereum leads the altcoin season.
Among the factors behind the BTC price surge, large-scale market players top the list. Following the approval of spot Bitcoin ETFs, the asset's pitch has maintained an upward momentum. Tapping $73K in Q1 2024, it broke $93K after Donald Trump's election win in November and eventually crossed $107K before the recent corrections. The inflow of funds and confidence in clearer regulations in the country led