As Bitcoin’s dominance in the Cryptocurrency Market has risen above 65%—the highest level since late 2020—it has become increasingly relevant to discuss the next phase of the crypto market cycle, known as the elusive “altcoin season.” Analysts are divided on whether an altcoin surge is imminent or if Bitcoin will keep consolidating its advantage as it draws institutional investment and outperforms other altcoins.
Bitcoin Dominance on Rise
The dominance is the percentage of the entire market capitalization of all cryptocurrencies held in Bitcoin. Rising dominance historically usually indicates that traders are choosing Bitcoin over more volatile, riskier alternative cryptocurrencies. Currently, this statistic shows great investor trust in Bitcoin in the middle of macroeconomic changes and more general market volatility.
Several elements have fueled Bitcoin’s most recent ascent in prominence. Following regulatory clearance in early 2024, major financial companies, including Millennium Management and Brevan Howard, have channeled billions into Bitcoin via U.S.-listed spot exchange-traded funds (ETFs). While other cryptocurrencies have been left behind, this tsunami of institutional money has lifted the market cap for Bitcoin.
Among the leading cryptocurrencies, Bitcoin’s price—which peaked in early May 2025 at nearly $94,000—remains the strongest performance. Daily swings notwithstanding, investor interest in Bitcoin as a hedge against geopolitical risk and inflation has stayed strong. Further supporting Bitcoin’s supremacy are the recent lowering of U.S.-China tensions and a sinking dollar, which help to define it as a safe-haven asset.
Bitcoin Dominance Grows
While Bitcoin climbs, altcoins have seen diminishing influence. Ethereum, once considered the primary altcoin rival to Bitcoin, has seen its market share nearly halved — dropping from 13% to just 7% since January 2024. Other major altcoins like Solana, Cardano, and Avalanche have also struggled to maintain market share in the face of Bitcoin’s rising tide.
Analysts suggest that a maturing crypto landscape may also contribute to this shift, in addition to investor preference. Institutions are increasingly focusing on regulatory-compliant, high-liquidity assets, and Bitcoin more comfortably meets this requirement than many altcoins, which are still subject to regulatory ambiguity and technical limitations.
Altcoin Season Outlook
Despite Bitcoin’s strength, many traders and analysts are asking the same question: when will altcoin season begin?
Historically, after a period of peak Bitcoin dominance, capital tends to rotate into altcoins as investors seek higher returns. This has been the pattern in previous cycles — Bitcoin rallies first, then altcoins surge. However, some analysts believe the current cycle may be breaking from tradition.
Joe Consorti, a market analyst at The Bitcoin Layer, argues that the dual rise in both Bitcoin price and dominance is unusual. In past cycles, Bitcoin dominance would spike early and then fall as altcoins rallied. This time, the rise is more sustained. Consorti believes this shift may be attributed to the nature of current market participants: more institutional, long-term investors who prefer Bitcoin’s proven track record over the experimental nature of altcoins.
On the other hand, other experts remain optimistic about the altcoin outlook. Ki Young Ju, CEO of crypto analytics firm CryptoQuant, highlights rising trading volumes in altcoins as an early sign of rotation. According to his data, altcoins now account for more trading volume than Bitcoin on several major exchanges. This increased activity could be an early indicator of renewed interest and a precursor to a broader altcoin rally.
Altcoin Market Fragmentation
One of the main obstacles to a true altcoin season lies in the fragmentation of the altcoin market itself. There are now thousands of altcoins, many with unclear utility, low liquidity, or lack of community support. In contrast to Bitcoin, which has emerged as a clear market leader, the altcoin space is highly competitive and often volatile.
This environment makes it harder for individual altcoins to attract the same level of sustained capital that Bitcoin enjoys. Furthermore, numerous investors and institutions prioritize regulation-friendly options, thereby excluding many altcoins from major investment flows.
Altcoin Market Potential
While Bitcoin clearly dominates the present status of the market, things could change rapidly. Sentiment-driven and famously cyclical are Crypto Markets. Macroeconomic changes, fresh altcoin use cases, or technological developments could pique interest in non-Bitcoin assets once more.
Some investors are looking for early signals of an altcoin season, such as declining Bitcoin dominance, increasing altcoin trading volume, or unexpected price swings in important tokens like Ethereum or Solana. Many are opting to hang onto Bitcoin and wait until then.
Final thoughts
Bitcoin’s surge to 65% dominance has reinforced its leadership in the crypto market and left altcoins struggling to keep pace. While the possibility of an altcoin season remains on the horizon, analysts are divided on the timing and conditions needed to spark the next phase of the market cycle. For now, Bitcoin remains the dominant force, with altcoins in a holding pattern as traders wait for the next big shift.
