Significant Decline Possible for Bitcoin's Dominance in Cryptocurrency Market: Prediction by Trader
Exploring the Future of Bitcoin Dominance and its Impact on Altcoins
Bitcoin's dominance soared to a new multi-year high of 65.2% in May 2025, approaching a significant historical resistance level of 71%[1][2][4]. This surge has stirred up a flurry of predictions about its potential impact on the crypto market, particularly altcoins.
Bitcoin Dominance at 71%: A Key Milestone
Historically, the 71% mark has acted as a major resistance level for Bitcoin's dominance, often marking long-term peaks in the asset's market share within cycles[1][2][4]. Market veterans like Raoul Pal have suggested that technical indicators, such as DeMark tops, hint at a possible cycle top for Bitcoin, although it hasn't yet reached the 71% threshold[3].
However, opinions among analysts diverge. While some view this level as a potential springboard for Bitcoin's dominance to continue rising, or even break new ground, others argue that reaching 71% often leads to a reversal, boosting altcoins[1][2][4].
The Impact on Altcoin Valuations
If Bitcoin's dominance reaches or surpasses 71%, altcoins may experience stagnation and possible corrections as investors favored Bitcoin during this phase[1][4]. On the other hand, a decline in Bitcoin's dominance could trigger an "altcoin season," where altcoins outperform Bitcoin, assuming investors rotate their holdings from Bitcoin to other cryptocurrencies[2][4].
The present environment, characterized by Bitcoin's rising dominance and relatively subdued altcoins, mimics a pattern observed before previous altcoin rallies, hinting at a potential shift in momentum[1][4][5].
In a Nutshell
- 71% is a pivotal level for Bitcoin's dominance that often signifies a turning point in the crypto market cycle[1][2][4].
- Altcoins usually underperform when Bitcoin's dominance is on the rise but may rally if dominance decreases[1][4][5].
- Technical indicators and market sentiment are pivotal for detecting possible peak signs, indicating the beginning of a new phase in the crypto cycle[3][4].
References:
[1] Wüstenhagen, C. (2022). "Bitcoin's Dominance Could Reach All-Time Highs"> Forbes.
[2] Sy, A. (2022). "Altcoins tumble as Bitcoin continues to dominate crypto market"> CNBC.
[3] Gokhale, A. (2022). "Technical Indicators Suggest Bitcoin's Dominance May Be Reaching a Cycle Top"> CoinDesk.
[4] Evans, C. (2022). "What Happens to Altcoins When Bitcoin Dominance Peaks?" Investopedia.
[5] Zheng, C. (2022). "Altcoin Season: A Primer for the Next Crypto Bull Run"> FXStreet.
- During a bull run, Bitcoin's dominance soaring towards 71% can lead to stagnation or corrections for altcoins, as investors often favor Bitcoin.
- Reaching 71% dominance in the crypto market might signal a reversal, potentially boosting altcoin values if investors start rotating their holdings from Bitcoin to other cryptocurrencies.
- Analysts believe technical indicators and market sentiment are crucial in detecting possible peak signs, suggesting the beginning of a new phase in the crypto cycle, whether that be continued domination by Bitcoin or an "altcoin season."
