Bitcoin Dominance Exceeds 60%: Key Insights and Market Implications

Bitcoin’s dominance has surpassed 60%, reflecting greater significance than in 2021 due to a vast increase in active cryptocurrencies. It has faced fluctuations, recently hitting over $85,000, amidst stronger market resilience compared to altcoins. Arthur Hayes predicts that dominance could reach 70%, while analyst Rekt Capital suggests potential altseason if dominance drops from 71%.

Bitcoin’s current dominance in the cryptocurrency market has exceeded 60%, a benchmark not seen since 2021. However, the significance of this dominance is enhanced due to the exponential growth in the number of cryptocurrencies and the decline of once-prominent altcoins. In 2021, the industry was home to about 3,000 to 4,000 active blockchain projects. By 2025, this number has ballooned to millions, increasing the impact of Bitcoin’s dominance amid a larger overall market.

In recent weeks, Bitcoin has experienced notable price fluctuations, underscoring its market supremacy. After falling to a five-month low of just over $74,000, the asset surged past $85,000, fuelled by favourable US Consumer Price Index data and political developments, including tariff relief with global trade partners. Although Bitcoin faced a slight rejection around $86,000, it continues to maintain an upward momentum, further highlighting its market dominance compared to other cryptocurrencies.

The current cryptocurrency landscape is starkly different from 2021’s, where altcoins like Ethereum (ETH) were also enjoying substantial gains. Currently, the ETH/BTC trading pair has dropped to 0.019, marking the lowest point since January 2020, indicating a significant decrease in Ethereum’s relative strength. Concurrently, other altcoins have failed to achieve meaningful market recovery, further solidifying Bitcoin’s position as the primary asset in the market.

Arthur Hayes, co-founder of BitMEX, predicts that Bitcoin’s market dominance might reach as high as 70%. This forecast stems from the increasing accumulation of Bitcoin by large holders, known as whales. Hayes highlights Bitcoin’s appeal as a hedge against inflation, especially considering potential shifts in U.S. monetary policies such as interest rate cuts and increased money supply, which enhance its reputation as a safe asset.

Prominent analyst Rekt Capital has also commented on Bitcoin’s prevailing dominance, suggesting that the anticipated “altseason” could emerge once Bitcoin’s market share rejects the 71% mark. Historical trends indicate that when Bitcoin’s dominance peaks around this level and subsequently declines, altcoins typically see a surge in value and market activity. As such, Bitcoin’s continued dominance may pave the way for a resurgence of altcoins, allowing them to recover lost market shares.