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Bitcoin [BTC] has tightened its dominance over the crypto market, with its market share now exceeding 63%, signaling what many analysts are calling a textbook “Bitcoin Season.” The sharp disparity between Bitcoin’s performance and that of altcoins has raised concerns over a broader altcoin capitulation.
According to Alphractal CEO Joao Wedson, fewer than 25% of altcoins are currently outperforming Bitcoin, which itself has dropped by -17.6%. In a sea of red, only four out of 57 tracked altcoins have managed to outpace BTC. PancakeSwap [CAKE] was the sole altcoin posting positive returns, up by +10.5%.
Altcoins are still in accumulation, and when BTC stumbles, get ready for a new Altcoin Season!
— Joao Wedson (@joao_wedson) April 2, 2025
Since December 2024, we’ve been in a bear market (actually, the sentiment was already bearish since October). But I still believe that between April and May, the market will heat up… https://t.co/XE26m6MZOl pic.twitter.com/obbbdfKHee
The broader picture, however, paints a grim scenario for altcoin investors. Most altcoins have suffered losses ranging from -20% to a staggering -72%, with JUNE leading the downside at -72.4%. Meanwhile, Bitcoin continues to act as a relative safe haven despite its own price drop.
Altcoin market dominance has also plummeted—from 41% in November to 37% currently. Excluding Ethereum and stablecoins, that figure shrinks further to 28%, highlighting the shrinking credibility and investor interest in altcoins.
Liquidity has also drained from the altcoin sector. On 5 December, altcoin market cap peaked at $1.43 trillion with a trading volume of $542.63 billion. As of 3 April, those numbers have fallen to $975.64 billion and $137.31 billion—a 32% and 296% decline respectively.
Adding to the warning signs, Bitcoin’s peak at $96,209 on 23 February coincided with a Stablecoin Supply Ratio (SSR) of 16.03. Both metrics reversed sharply days later, with BTC down to $81,800 and SSR dropping to 14.21—signaling liquidity exhaustion.
The bottom line: Bitcoin is absorbing capital flight from altcoins, reinforcing its dominance. Without a major shift in liquidity or sentiment, any altcoin rally may remain short-lived. For now, Bitcoin is where the smart money is staying put.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Bitcoin Eyes $71K Target as US Tariffs Threaten BTC Bull Run
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
