While the price of Bitcoin reached $97,000 – closer than ever to its historical peak – its dominance in the crypto market is also climbing to a four-year high of 64.89%, according to the latest data from TradingView. The question is: What is happening with altcoins?
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Bitcoin dominates, altcoins lag behind
Since the beginning of 2025, Bitcoin's market dominance has surged from 57.9% to nearly 65%. This is the highest level since January 2021. The main reasons are:
• The strong price rebound of BTC (currently only about 10.9% away from the peak of $108,786)
• Strong confidence from institutional investors, especially after the cash flow into Bitcoin ETFs exceeded $4 billion compared to gold
• The withdrawal from the market of many altcoins such as Ethereum, Solana, Dogecoin – which have decreased by 54%, 43%, and 61% respectively from their recent peaks
While altcoins previously surged after Donald Trump's election victory in late 2024, strict tariff policies in February and March quickly dampened that wave of excitement. And although Bitcoin was also affected, recent tax exemption measures from the Trump administration helped BTC recover, while most altcoins did not.
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BTC – Still the 'king' in the eyes of investors
According to David Morrison – a senior market analyst at Trade Nation:
"Bitcoin has a first-mover advantage, is more widely accepted, and operates in a much friendlier regulatory environment compared to altcoins."
He also pointed out that limited supply and a strong recovery history after each decline make Bitcoin continue to be a safe choice for both individual and institutional investors.
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Investor sentiment and macroeconomic factors remain key
Macroeconomic factors such as the US-China tariff war are diminishing investors' risk appetite. As capital retreats from traditional US assets, Bitcoin becomes an attractive alternative destination – thanks to its independence and not being controlled by any government.
However, if the United States and China reach a meaningful trade agreement, the market picture could reverse. At that point:
• Altcoins could accelerate back
• Bitcoin will reduce its dominance
• Many highly speculative coins could have the opportunity to 'outperform' BTC in terms of percentage profit
"When risk appetite increases, investors tend to expand into assets outside of Bitcoin – this is when altcoins could break through," Morrison noted.
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Impact on Binance users and crypto investors
If the current trend continues, Binance and other major exchanges will continue to see a strong influx of capital into BTC, while trading volumes of altcoins may decline. Users need to:
• Closely monitoring the changes in ETF cash flow
• Observing the trade policies of the Trump administration
• Reassess the investment portfolio: have they become too dependent on altcoins that show no signs of recovery?
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Risk warning: Although Bitcoin is maintaining its performance, the crypto market always carries significant volatility. Investing in BTC or altcoins involves considerable risks, especially when overly dependent on macroeconomic policies. This is not an investment form suitable for everyone.