BTC Dominance Remains High in 2025: Will Altcoins Stage a Comeback?

As Bitcoin (BTC) continues to dominate the crypto market in 2025, investors eagerly await a potential shift back to altcoins.

• The BTC dominance (BTC.D) remains at yearly highs, hindering broader altcoin recovery efforts.

• Despite initial sell-offs in early 2025, altcoins found support at 2024 levels, signaling potential stabilization.

This article examines the current landscape of BTC dominance and its implications for altcoins, offering insights into potential market shifts.

The Impact of BTC Dominance on Altcoin Markets

In 2025, Bitcoin’s dominance surged significantly, rising by 13% between January and April. This increase has limited the potential for altcoins to recover from their market dump, which has seen a shrinkage of the total altcoin market (Total3) from $1.13 trillion to $817 billion—an alarming 28% decline.

Identifying Support Levels in the Altcoin Market

With BTC.D currently exceeding 64%, there’s speculation that it might extend toward 66% or even 70%, similar to trends observed during the 2021 market cycle. However, it’s critical to note that the altcoin sector appears to have found a bottom, stabilizing around the $750 billion market cap level. Historical patterns suggest that such stabilization often precedes a rebound, particularly among smaller altcoins.

Source: TradingView (Altcoin marketcap vs. USDT dominance)

Potential for a Market Rebound

Analysts suggest that the altcoin segment may see a significant rebound if it can break above crucial moving averages. A breakout above the 50-week moving average (50WMA) could potentially trigger a rally towards resistance levels near $500 billion. At present, some altcoins are already showing positive momentum, with the segment up by 33% recently, driven by a slight decline in USDT dominance, which could suggest renewed interest in altcoin investments.

Current Market Sentiment and Noteworthy Performers

The recent Altcoin Season Index (ASI) reading indicates a current preference for Bitcoin over most altcoins, maintaining a score of 18. However, amidst the ongoing BTC season, a handful of altcoins have managed to somewhat outperform Bitcoin. Notable examples include Fartcoin [FARTCOIN], which is up 8%, PancakeSwap [CAKE], up by 2.8%, and Monero [XMR], showing an impressive gain of 19% over the past three months, despite Bitcoin itself experiencing a 10% dip.

Source: CoinMarketCap

Conclusion

The recent easing in altcoin sell-offs suggests that a broader rebound could be on the horizon. Nonetheless, this will largely depend on whether Bitcoin’s dominance can sustain its upward trajectory or begin to decline, allowing for capital to flow back into altcoins. Investors should remain vigilant as market conditions evolve and be prepared for both upward and downward movements in this dynamic landscape.