Bitcoin has demonstrated relative resilience compared to alternative cryptocurrencies (altcoins) during a recent broad market downturn. Bitcoin Dominance (BTC.D), measuring its share of the total cryptocurrency market capitalization, increased by 1.4%, rising from 63.8% to 64.7%.
This gain in dominance occurred against the backdrop of a roughly 6% decline in the total market valuation. Altcoins suffered disproportionately steeper losses than Bitcoin during this correction.
Multiple factors contributed to the market weakness, including heightened geopolitical tensions, such as the conflict between Israel and Iran, which fueled investor risk aversion. The downturn also triggered significant market liquidations, exceeding $1 billion.
Analysts interpret this shift in investor preference towards Bitcoin as indicative of its perceived role as a ‘safe haven’ asset during periods of macroeconomic and geopolitical uncertainty. This dynamic is also reflected in the ALT/BTC ratio, a key metric for comparing altcoin performance relative to Bitcoin, which declined from 0.34 to 0.32, signifying altcoins’ underperformance.
The combination of Bitcoin’s strengthening dominance and the altcoins’ weakness has led market observers to predict a delay in any major altcoin rally cycle. Some analyst forecasts suggest a substantial altcoin season may be postponed until late 2025.