Bitcoin's market share has fallen below 60%
According to news from the cryptocurrency community, Bitcoin's market share has recently dropped significantly, declining by 5.8% in a single week to below 61%, marking the largest weekly drop 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 decline in Bitcoin's market share below 60% can be attributed to the following reasons:
Emergence of new cryptocurrencies: With the development of smart contract platforms like Ethereum and the surge of numerous emerging cryptocurrencies, investors now have more options for their funds, leading to an increasing trend of capital diversification, which directly challenges Bitcoin's dominant position in the overall cryptocurrency market.
Changes in market sentiment and risk appetite: As Bitcoin's price rises to a certain extent, investors' risk appetite increases, prompting them to seek assets with higher returns. Funds gradually flow from Bitcoin to altcoins and other cryptocurrencies, resulting in a decline in Bitcoin's market share.
Impact of regulatory policies: Potential pro-crypto policies introduced by the Trump administration may 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 may seek investment opportunities with higher returns, promoting the development of other cryptocurrencies and affecting Bitcoin's market share.
The fall of Bitcoin's market share below 60% may have the following effects on the cryptocurrency market:
Initiation of altcoin rallies: A decline in Bitcoin's market share often signals the onset of "altcoin season," indicating that the prices of major altcoins may rise significantly and outperform Bitcoin. Some analysts predict that when Bitcoin's market share falls below 58%, it will mark the beginning of altcoin season.
Increased market volatility: The correlation between Bitcoin and other cryptocurrencies may change, potentially leading to increased market volatility and triggering a chain of liquidations in leveraged positions. Historical experience shows that a decrease in Bitcoin's market share is usually a precursor to heightened market volatility, often accompanied by large-scale liquidation waves.
