Bitcoin’s market dominance has soared to a remarkable 4-year high, surpassing 62%, marking its most significant position since March 2021, despite experiencing a substantial 29% correction. This resurgence demonstrates Bitcoin’s resilience in a market increasingly characterized by volatility.
A brief spike above this level was noted earlier on February 3; however, that was seemingly an isolated incident. In contrast, the recent upward trajectory in Bitcoin’s dominance appears to be more consistent and sustainable, as indicated by Tradingview.
Since early December, BTC’s market share has been on a gradual incline, recovering from a low of 55%. Many had hoped for an altseason during this period, but those expectations were not realized. On March 12, Matrixport reported, “Bitcoin dominance has surged to a new cycle high, surpassing its previous peak; clear evidence that the altcoin rally was short-lived.” This assertion highlights a significant shift in market dynamics.
Today’s #Matrixport Daily Chart – March 12 2025
Bitcoin Dominance Surges as Altcoin Rally Fizzles
#BTC #CryptoMarket #cryptocurrency #USDT #Bitcoin #Altcoins #ALTSEASON #Matrixport pic.twitter.com/auhCJqWF7g
— Matrixport Official (@Matrixport_EN) March 12, 2025
BTC Consumes Market Share
Traders appear to be shifting their strategies, moving out of altcoins and investing in Bitcoin, which, while experiencing its own setbacks, has considerably outperformed many alternative cryptocurrencies. Analysts suggest that the next phase of the Bitcoin rally may require a degree of patience due to the Federal Reserve’s anticipated hawkish monetary policy.
Some analysts have indicated that a Bitcoin dominance rate of around 70% could signal the peak of its current cycle, with anything below that potentially heralding a new altseason. However, given the substantial losses many altcoins have incurred—many dropping below 50% of their previous highs—it appears this transition may be a distant prospect.
Highest #Bitcoin dominance daily candle close since 2021.
History is repeating.
Luckily we know that Altcoin season is next. pic.twitter.com/E0kuhbmlHu
— CryptoGoos (@crypto_goos) March 12, 2025
Amid these developments, Ethereum, the second-largest cryptocurrency, has faced significant challenges, with its market share plummeting to 8.5%, the lowest it has been in nearly five years, as reported by Tradingview. Ethereum prices have dipped below $1,800, failing to recover the crucial $2,000 threshold.
Currently, Ethereum’s position against Bitcoin is its weakest since May 2020, with the ETH/BTC ratio declining to 0.022 this week.
78% of all ETH/BTC trading days now in the red… https://t.co/3t72k10FZW pic.twitter.com/1tK2uNBcmo
— _Checkmate
(@_Checkmatey_) March 13, 2025
The Decline of Altcoins
Ethereum is not alone in suffering. The altcoin market has encountered severe losses, particularly Solana, which has seen a staggering decline in value over the past couple of months. The collapse of the memecoin market significantly impacted Solana, which derives nearly 80% of its revenue from memecoin activity, leading to a 60% drop in SOL prices since mid-January.
Other altcoins are not faring better. Cardano (ADA) has experienced fleeting spikes above the $1 mark but remains down 76% from its 2021 peak. Dogecoin (DOGE) similarly struggles, facing significant downward pressure.
Numerous other altcoins have also fallen into bear market territory, declining over 70% from their peaks. This includes notable assets such as Chainlink (LINK), Stellar Lumens (XLM), Avalanche (AVAX), Shiba Inu (SHIB), Bitcoin Cash (BCH), Litecoin (LTC), and Polkadot (DOT).
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