BTC dominance steadily rising since 2023, is altseason now a relic?

Bitcoin (BTC) dominance, a measurement of Bitcoin's wide stock of the crypto market, has been steadily rising since 2023 amid a torrent of caller cryptocurrency coins and tokens.

The existent BTC marketplace dominance is astir 61.6%, down from the section highest of 64.3% recorded connected Feb. 3.

BTC marketplace dominance broke backmost supra 60% connected Feb. 2 amid a wide marketplace downturn implicit fears of a prolonged commercialized war betwixt the United States and its trading partners.

Macroeconomic uncertainty typically takes a toll connected risk-on assets, and the caller marketplace downturn deed altcoins harder than BTC owed to their little liquidity and higher-risk profiles.

Bitcoin marketplace dominance has been rising since 2023. Source: TradingView

The existent marketplace rhythm besides features Bitcoin exchange-traded funds (ETFs), which silo liquidity into these fiscal instruments — preventing superior rotation into altcoins, which crypto traders and investors person go accustomed to.

Previous cycles were characterized by investors rotating profits from little risky assets specified arsenic BTC into progressively higher-risk investments, starting with precocious marketplace headdress altcoins and yet moving their mode into smaller headdress tokens.

The liquidity siloed successful accepted concern vehicles coupled with the proliferation of caller coins and tokens competing for constricted capitalist attraction and superior has led immoderate analysts to suggest that altcoin play is present a happening of the past and volition not beryllium a diagnostic of the existent oregon aboriginal marketplace cycles.

Related: Bitcoin poised to reclaim $90,000, according to derivatives metrics

Too galore tokens person saturated the market

The full fig of cryptocurrency tokens and coins listed connected CoinMarketCap connected Feb. 8 was below 11 cardinal unsocial assets, arsenic of March 15 the fig of integer assets listed connected the website has surged to implicit 12.7 million.

Tens of millions of unsocial integer assets are present floating astir the markets. Source: Dune

Over 600,000 tokens were launched successful January 2025 alone. The immense bulk of these assets were memecoins created connected just motorboat platforms and low-cap altcoins.

According to marketplace expert Jesse Myers, erstwhile these coins fail, they bash not spell to $0. Instead, they linger astir marketplace capitalizations of $10,000 to $100,000 — permanently trapping superior wrong illiquid pools.

The proliferation of caller tokens and integer assets prompted Coinbase CEO Brian Armstrong to reevaluate the exchange's token listing process to conscionable user demand.

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This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.