In May 2025, Bitcoin's dominance in the market reached 64.5%, which is the highest number in over 4 years‼️

Then people started asking: Does this mean that an alternative currency season will start? Or is it still far away?

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🔍 First, what does 'Bitcoin dominance' mean?

Simply put, Bitcoin dominance is the percentage of the total market value that Bitcoin holds. So if it is 64.5%, it means more than half of the money in the market is in Bitcoin, and the rest is distributed among other currencies.

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How can Bitcoin dominance affect things?

When Bitcoin dominance rises, it means one of two things:

1. Either people sell alternative currencies and return their money to Bitcoin.

2. Or new money enters the market, and all of it goes to Bitcoin and nothing else.

In both cases, there was a weakening in the momentum of alternative currencies, as all liquidity was going in one direction.

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So, what does it mean if dominance starts to decline?

If dominance decreases, this is often a signal that money is starting to move from Bitcoin to other currencies, or at least there is a more balanced 'liquidity distribution' happening. Here, other currencies usually start to rise and provide strong opportunities.

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✅ Yes, Bitcoin dominance is related, but it's not a direct 100% relationship as people imagine. But... does this always happen this way? No... let me clarify this for you.

Sometimes Bitcoin dominance decreases, but the whole market drops because people are selling everything (not just Bitcoin). And sometimes Bitcoin rises along with alternative currencies, especially strong projects. So we need to look at the bigger picture.

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Bitcoin dominance is one tool among other tools for analyzing the market situation, but it is not a sufficient indicator on its own.

You have these matters to follow as well:

- Liquidity movement (on-chain)

- Trading volume on alternative currencies

- The American market and interest rates

- Investor trends, institutional or retail (Institutional or Retail)

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📈 What's happening in the market right now? What are the opinions?

- The rise happened because new investments entered Bitcoin, not because people sold alternatives (other cryptocurrencies). This is according to a report.

BeInCrypto.

- Some analysts said at that time (before this rise) that there was nearby resistance, and if there was a decline in dominance, an alternative currency season could start.

** If you are new and don't know the meaning of the word (resistance) or (support). This post clarifies the topic for you:

‏‪https://x.com/withmonis/status/1917261047318163882?s=46‬

- There is an analyst named (Scott Melker) who was warning and saying this cycle is different, because people haven't transferred their money to alternative currencies, so new capital needs to come in for things to move.

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💡 What is required from you (in my personal opinion)?

Don't rush and act hastily, keep your eye on the market and study the opportunity first, then enter. And when you do enter, pay attention to these important matters:

- Risk management and knowing your limits

- Not buying with all your capital

- Don't be greedy. Withdraw your capital with the first double you achieve.