Institutional Inflows Propel Bitcoin to 57.7% Dominance, Leaving Altcoins in the Dust

Bitcoin dominance has surged to 57.7% as of September 22, 2025, reflecting a pronounced shift in capital flows toward the leading cryptocurrency amid widespread altcoin underperformance and declining Ethereum trading volume. The total crypto market cap fell to $3.89 trillion, with Bitcoin’s market share consolidating amid heightened volatility and selling pressure. Ethereum’s market share dropped to 13.0%, while its 24-hour volume of $49.71 billion marked a significant decline compared to Bitcoin’s $54.78 billion, signaling a broader reallocation of funds from altcoins to Bitcoin.

The downturn affected nearly all major altcoins, with Bitcoin’s price dipping below $113,000—a key support level—amid a 2.65% drop. Ethereum’s losses were steeper, falling 6.40% to $4,187, while Solana, Dogecoin, and Cardano all recorded double-digit declines. The Altcoin Season Index, at 62, suggests lingering altcoin advantages, but the CoinMarketCap 20 Index fell 3.8%, underscoring broad-based weakness. The Fear and Greed Index, at 47, indicated neutral-to-fearful sentiment, aligning with the market’s corrective phase.

Institutional and ETF inflows have further amplified Bitcoin’s dominance. U.S.-listed Bitcoin ETFs have raised $3.48 billion this month, compared to just $406.87 million for Ethereum ETFs, according to SoSoValue data. Year-to-date, crypto markets have attracted $140.5 billion in inflows, with Bitcoin-centric products accounting for the majority. Analysts attribute this trend to waning demand from Ethereum-focused treasuries, as net asset values for such entities shrink, limiting their capacity for further capital deployment.

Technical indicators also highlight Bitcoin’s strengthening position. The Ether-bitcoin ratio fell to 0.03699, a 4.1% decline, while the BTC-gold ratio dropped to 30.25, its lowest since June 23. Derivatives positioning shows short positions dominating in tokens like TRX, ADA, and LINK, with funding rates turning negative, indicating bearish sentiment. Meanwhile, Bitcoin’s hashrate remains stable at 1,079 EH/s, and open interest in BTC futures on Binance has risen to 276K BTC, reflecting increased speculative activity.

Market participants remain divided on the sustainability of Bitcoin’s dominance. Markus Thielen of 10x Research noted that insufficient inflows currently support a material price increase for Bitcoin, while others view the pullback as a healthy correction. Over $1.5 billion in leveraged positions were liquidated in the past 24 hours, with Ethereum trading pairs accounting for $500 million of the losses. Despite the selloff, the average crypto token RSI at 28.4 suggests oversold conditions, potentially setting the stage for a relief rally if support levels hold.

The surge in Bitcoin dominance aligns with broader macroeconomic trends, including reduced risk appetite and institutional adoption. The U.S. now holds 40% of Bitcoin’s total supply, with corporate holdings led by companies like MicroStrategy. Regulatory clarity and ETF approvals have further solidified Bitcoin’s role as a reserve asset, while altcoin fatigue—exacerbated by the 2024 memecoin frenzy—has accelerated capital rotation toward safer assets. Analysts predict Bitcoin dominance could climb above 70% by October 2025, driven by institutional demand and geopolitical uncertainties.