Bitcoin Dominance Approaching 71% – Is This a Warning or a Prelude to Altcoin Season?
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Written by
Simonas Brazionis - Updated 2025-05-07 21:35:36
Bitcoin is once again leading the crypto space, not only in terms of price but also in market share. According to trader Rekt Capital, BTC dominance has now surpassed 65%, a significant milestone that could signal major shifts in the market.
So, the big question remains—are we witnessing a warning sign for altcoins, or is this simply a calm before the potential start of altcoin season?
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Bitcoin Dominance Nears 71%
In recent months, Bitcoin dominance has been on the rise, meaning that Bitcoin is taking up a larger portion of the overall crypto market. This typically happens when investors gravitate more towards Bitcoin than other cryptocurrencies.
A chart shared by crypto analyst Rekt Capital reveals that Bitcoin’s dominance is approaching a crucial resistance zone near 71%, a level it has struggled to surpass in previous cycles. At the moment, Bitcoin sits at 65.38% dominance, just 6% away from that key point. If this trend continues, the market may be approaching a significant turning point.
Ethereum Struggles Against Bitcoin
Meanwhile, Bitcoin’s price has surged to $97,000, marking a 30% increase from its lowest point earlier this year. This strong performance is one of the reasons behind Bitcoin’s rising dominance, as more investors are choosing BTC over alternative coins.
On the flip side, altcoins are losing momentum. Ethereum, the second-largest cryptocurrency, has seen its market share fall to just 7.5%, a stark contrast to its peak of over 22% in 2022.
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Despite Bitcoin’s rally, Ethereum is failing to follow suit. In fact, Ethereum’s value compared to Bitcoin is nearing historic lows.
Could Altcoins Be on the Verge of a Comeback?
If Bitcoin dominance continues to rise, altcoins may continue to lag behind. However, if the 71% mark holds and triggers a reversal, we could see the start of an “altcoin season,” where smaller coins gain momentum as Bitcoin cools down.
Currently, the Altcoin Season Index sits at 29, indicating that altcoin season is still some time away. For it to fully begin, at least 50 out of 75 altcoins need to outperform Bitcoin.
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