Bitcoin's market share has dropped below 60%
According to news from the cryptocurrency community, Bitcoin's market share has recently plummeted, decreasing by 5.8% in a single week to below 61%, marking the largest weekly decline since June 2022, and also reaching the lowest level since March 2025. Subsequently, Bitcoin's market share continued to decline; according to Golden Finance, on July 25, its market share had fallen to 60.76%.
The drop in Bitcoin's market share below 60% is mainly due to the following reasons:
Emergence of new cryptocurrencies: With the development of smart contract platforms like Ethereum and the influx of many new cryptocurrencies, investors now have more options for their funds, and the trend of capital diversification has become increasingly evident, directly challenging Bitcoin's dominant position in the entire cryptocurrency market.
Changes in market sentiment and risk appetite: As Bitcoin's price rises to a certain level, investors' risk appetite increases, leading them to seek assets with higher returns, gradually shifting capital from Bitcoin to altcoins and other cryptocurrencies, resulting in a decline in Bitcoin's market share.
Impact of regulatory policies: Potential pro-crypto policies from the Trump administration could clarify the legal status of digital assets, seen as a “green light for institutional capital to enter the cryptocurrency market.” Once institutional capital enters the market, the dynamics of the cryptocurrency market change, and retail investors seek investment opportunities with higher returns, thereby promoting the development of other cryptocurrencies and affecting Bitcoin's market share.
The drop in Bitcoin's market share below 60% may have the following impacts on the cryptocurrency market:
Start of altcoin season: A decline in Bitcoin's market share often signals the onset of “altcoin season,” meaning that the prices of mainstream altcoins may rise significantly and outperform Bitcoin. Some analyses predict that when Bitcoin's market share falls below 58%, it will mark the beginning of the altcoin season.
Increased market volatility: The correlation between Bitcoin and other cryptocurrencies may change, leading to heightened market volatility and potentially triggering a chain liquidation of leveraged positions. Historically, a decrease in Bitcoin's market share has often been a precursor to intensified market volatility, usually accompanied by a wave of large-scale liquidations.
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