Bitcoin has markedly strengthened its position in the cryptocurrency market, with its dominance index (BTC.D) exceeding 65% for the first time since February 2021. This significant milestone signals robust investor confidence in the leading cryptocurrency amid ongoing market turbulence.
The surge has coincided with a steep decline in altcoin performance, as evidenced by the Altcoin Season Index plummeting to 12—its lowest reading in two years. Analysts project Bitcoin’s dominance could ascend toward the 71% threshold, warning this trajectory may trigger sharp corrections in altcoin valuations similar to recent market events earlier this year.
Seasonal patterns suggest a potential altcoin rebound could emerge later in the summer, as historical data indicates the Altcoin Season Index typically bottoms during June or July. Geopolitical instability, including escalating tensions between the U.S. and Iran, has further driven investors toward Bitcoin as a perceived safe-haven asset, amplifying market volatility and contributing to the capital rotation away from alternative cryptocurrencies.