Market Dynamics: Why BTC Price is Rising While the Overall Crypto Market Feels Weak
1. Bitcoin Dominance Is Falling
Bitcoin dominance measures BTC's share of the total crypto market cap. A drop in dominance usually means altcoins are losing value faster than Bitcoin, even if BTC itself is rising or stable .
As of early August 2025, BTC dominance slipped below 60% for the first time since February, signaling that altcoins are under pressure and losing market share .
2. Technical Resistance at Play
BTC dominance is currently testing its 50-week moving average, a key support level near 60%. A breakdown below this could trigger more rotation into altcoins—potentially signaling the start of an altcoin season—but for now, it may still limit broader market upside .
3. Rotational Dynamics
In many cycles, when BTC dominance drops, it's a sign that traders may begin rotating capital into riskier altcoins—as long as Bitcoin remains stable or rising modestly .
A sustained drop in dominance is considered a classic precursor to an altcoin rally. However, if BTC dominance bounces instead, it suggests capital remains focused on Bitcoin, which could keep altcoins lagging .
4. Rising Altcoin Strength versus BTC
Analysts observe that altcoins, especially Ethereum, are gaining strength—even without a dramatic drop in Bitcoin dominance. One noted strategist commented:
"BTC dominance hasn’t even sneezed and Alts are ripping." .
Another analyst highlighted the risk that continued Ethereum strength could mean Bitcoin dominance has already peaked:
"99% chance Bitcoin dominance has peaked if Ethereum surge continues." .