- Bitcoin dominance reaches 60.4%: Bitcoin’s market dominance is at its highest level since the 2021 bull run, raising concerns about a delayed or paused altcoin season.
- Altcoins losing ground: Analyst Benjamin Cowen highlights that altcoins have been steadily declining against Bitcoin since 2021, with the OTHERS/BTC ratio hitting a new three-year low.
- Hype cycles hurting altcoins: Short-lived pumps from new meme coins and speculative alt projects have contributed to Bitcoin’s dominance, as capital keeps flowing back to Bitcoin after temporary altcoin spikes.
Bitcoin’s hold over the crypto market is growing stronger, even though many cryptocurrencies, including Bitcoin itself, have had a rough start to the week. According to CoinMarketCap, Bitcoin’s dominance has climbed to 60.4%—its highest point since the 2021 bull market. This surge has sparked debate over whether altcoin season is imminent or if it’s been put on hold indefinitely.
Bitcoin Dominance Suggests a Long-Term Shift
Popular crypto analyst Benjamin Cowen sees a pattern. Altcoins, he points out, have been steadily bleeding value against Bitcoin since 2021, despite occasional short-lived rallies. His analysis of the OTHERS/BTC chart shows that any major altcoin comeback might still be far off. Investors waiting for an explosive altseason could be in for a long wait.
Cowen explained that Bitcoin’s dominance raises questions about when—or if—the gains will eventually spill over into altcoins like in previous cycles. The OTHERS/BTC ratio, which tracks the market cap of all altcoins outside the top ten relative to Bitcoin, has been in a consistent downtrend for nearly three years. This week, it hit a new low not seen since the 2021 bull run.
This is the most important chart in crypto right now
— BlockNews (@blocknewsdotcom) February 6, 2025
Bitcoin $BTC dominance wicked to its highest point in over 1,440 days (~4 years)
Traditionally, when $BTC dominance increases, altcoins bleed VERY hard
As we've seen over the last few weeks pic.twitter.com/utODJvKXlZ
Hype and Short-Term Pumps Hold Back Altcoins
Interestingly, Cowen pointed out that new meme coins and hype cycles are partly to blame for Bitcoin’s rising dominance. Many altcoins briefly outperform Bitcoin due to short-lived pumps, only to collapse shortly after. This pattern has led some investors to misinterpret these pumps as the start of a wider altcoin rally, even as capital continues flowing back to Bitcoin.
Will Altcoins Rebound?
The decline of the OTHERS/BTC ratio underscores how Bitcoin is tightening its grip on the market. This is particularly evident among institutional investors, who seem to favor Bitcoin as their primary crypto asset. However, not everyone has given up on altcoins. Some analysts remain optimistic about an eventual resurgence.
Cowen noted that quantitative tightening (QT)—a process where central banks reduce liquidity—has historically played a key role in suppressing altcoin growth. During the previous bull market, altcoins only began gaining traction when QT ended. For now, though, with QT still in effect, the conditions for a strong altcoin season haven’t materialized.
At the time of writing, BitcoBitcoin Could Surpass $250,000 and Here is Whyin is trading at $97,900. Until broader economic conditions shift, Bitcoin’s dominance looks set to continue its steady climb. For now, the wait for a full-blown altcoin rally may just keep dragging on.
