Despite the usual post-halving Bitcoin rotation cycle, Bitcoin's dominance remains high due to institutional investors' strong demand, potentially delaying the anticipated "altseason." Analysis reveals the impact of this accumulation trend.
Historically, market cycles favored capital rotation from Bitcoin to altcoins after halvings. This time, however, BTC dominance over the total market capitalization (excluding stablecoins) continues to rise, contrary to previous cycles.
Analysts attribute this to growing institutional appetite. Corporate treasuries and pension funds are massively accumulating BTC through ETFs and direct purchases, preferring long-term positions, which limits capital flows toward altcoins.
With nearly +80% gains over the past year for Bitcoin, compared to just +16% for the S&P 500, institutional investors remain cautious about the volatility of altcoins.
Despite Ethereum’s solid performance (+100% since April compared to Bitcoin’s +40%), Bitcoin’s dominance has yet to shift significantly.
Experts predict that rotation could materialize if institutional flows move more from Bitcoin ETFs to Ethereum ETFs. American regulatory initiatives, particularly tokenization and staking ETFs, could also play a key role.
For now, derivatives markets show few signs of euphoria or a notable decline in BTC dominance, making the “altcoin season” more uncertain than ever.
The interaction between institutional investors’ appetite for Bitcoin and altcoin dynamics remains decisive. As long as BTC attracts capital, altcoins struggle to establish lasting dominance. Regulatory developments and institutional fund movements will be crucial to monitor, as they could soon reshuffle the deck in the crypto market.
Passionate about cryptocurrencies since 2019, I cover the latest news through clear and accessible articles. My goal is to make crypto understandable for everyone, with reliable and well-researched content.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
