Bitcoin Dominance Reaches All-Time High
Bitcoin's grip on the crypto market tightens, leaving altcoins struggling. Is the much-loved altseason now history? We look at a market in flux.
Imagine Bitcoin as a powerful boxer in orange gloves, lording over the ring. The altcoins are down, seemingly defeated. Bitcoin is taking all the money.
Bitcoin now holds 61.6% of the total crypto market value. This hasn't happened in years. On February 3, 2025, Bitcoin’s power hit 64.3%. Experts say this shows money is flowing into the safest crypto asset.
In the past, the crypto market followed a familiar pattern. Bitcoin would rise first. Then, profits would move to altcoins, causing their value to jump. This shift of money allowed new cryptos to grow and boosted altseason.
But this pattern seems broken. Bitcoin ETFs have changed things. They attract big investments from institutions. These ETFs trap money, stopping it from spreading to altcoins.
The result is obvious: Bitcoin grabs most of the investment. Other cryptos suffer.
The market is flooded with tokens, but there is not enough money to go around.
Experts predict over 12.7 million cryptos (besides Bitcoin) by March 15, 2025. That is up from less than 11 million in February.
In January alone, over 600,000 new tokens appeared. Most were memecoins and altcoins with small values.
This creates a big problem: too many projects, too little money. Many new tokens fail quickly and sit idle.
Analyst Jesse Myers said it well: "When a token dies, it doesn't vanish. It gets stuck between $10,000 and $100,000 in value, blocking money from being reused."
This overload worries even big crypto exchanges. Coinbase CEO Brian Armstrong is thinking about changing how tokens are listed to deal with this flood.
The data shows a major shift in the crypto market. The old altseason seems over. A new balance may be forming. Will altcoins ever shine again with Bitcoin so strong?