- Bitcoin dominance surged to 63.3%, reflecting investor preference for safer assets.
- Altcoin dominance near key support zones hints at a potential market rotation ahead.
- Mild gains in ETH and top alts suggest early signs of altcoin recovery may be forming.
The cryptocurrency market continues to revolve around Bitcoin, with recent data showing its growing dominance at the expense of altcoins. Despite repeated hopes for an altcoin breakout, Bitcoin remains the favored asset. From October 2024 to late May 2025, its market share rose significantly. This shift reveals a clear investor preference for safety amid uncertain altcoin prospects.
Although total crypto market capitalization also increased during the same period, the benefits have mostly flowed into Bitcoin. With subdued retail activity and low speculative interest, altcoins remain sidelined but that could change if key signals hold.
Bitcoin’s Unshaken Hold on the Market
According to Matrixport’s latest analysis, Bitcoin dominance surged from around 55% in October 2024 to 63.3% by May 2025. The rise followed a brief decline to 53.9% in December, after which it steadily climbed. This growing dominance has occurred alongside an overall crypto market cap increase, peaking at $3.7 trillion before stabilizing slightly.
Significantly, Bitcoin’s growing influence suggests limited risk appetite among investors. Besides, historical trends show that altcoin rallies usually require Bitcoin’s share to drop but has not happened. This absence of rotation indicates most capital continues to flow into Bitcoin rather than diversify across alternative tokens.
📊 Today’s #Matrixport Daily Chart – June 3, 2025 ⬇️
— Matrixport Official (@Matrixport_EN) June 3, 2025
Altcoin Hopes Fade as Bitcoin Remains the Only Safe Bet#Matrixport #Bitcoin #BTC #MarketTrends #CryptoResearch #altcoin pic.twitter.com/2pYC3Xh1a9
Are Altcoin Support Levels Signaling a Reversal?
Alphractal’s insights provide a fresh perspective. Their focus on altcoin dominance especially excluding stablecoins and Ethereum highlights key support zones.
Altcoin dominance (excluding stablecoins) typically finds strong support around 25%. Historically, levels between 24% and 25.3% have often preceded notable altcoin rallies lasting several weeks.
Additionally, when excluding both Ethereum and stablecoins, dominance around 18% emerges as a critical threshold. This measure emphasizes Ethereum’s role in sustaining altcoin market strength.
🔥 Is a Good Opportunity for Altcoins About to Happen?
— Alphractal (@Alphractal) June 2, 2025
To explore this possibility, we’ve selected two key indicators:
1⃣. Altcoin Dominance (excluding all Stablecoins)
2⃣. Altcoin Dominance (excluding ETH and all Stablecoins)
Historically, Altcoin Dominance excluding… pic.twitter.com/ekePyVUPgJ
Historically, a dip below 18% has often marked a tipping point, with Bitcoin losing ground to lesser-known tokens shortly afterward. Hence, if these levels hold, altcoins may soon regain momentum.
Market Reflects Bitcoin’s Strength
As of June 3, 2025, CoinMarketCap data shows Bitcoin trading at $105,315.35 with a 0.83% daily gain. Ethereum follows with $2,617.39 and a notable 5.39% rise. BNB, Solana, and XRP also posted moderate gains, suggesting mild altcoin recovery.
