Bitcoin : Domination Despite Market Cycles

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.

Ethereum : Awaiting a Shift

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.

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