Rekt Capital: Bitcoin’s dominance in the crypto market has reached a historic record

Recently, bitcoin’s dominance BTC $65,672.97 Bitcoin -0.28% Market capitalization $1.3 trillion VOL. 24 hours $0.6 billion in the cryptocurrency market reached 58%, the highest since April 2021. This comes on the heels of almost two years of growth after a drop in November 2022, when the value of BTC fell to $ 16,000 due to the collapse of the FTX exchange. Since then, bitcoin has steadily recovered its position, which has had a negative impact on altcoins, especially Ethereum ETH $2,670.42 Bridged Ether (StarkGate) -1.10% Market capitalization $0.2 billion VOL. 24 hours $0.37 billion . The analysis was shared by Rekt Capital on the X platform.

Ethereum’s market share has decreased by 30% over the past year, falling below 14%. This happened for the first time in the last three and a half years. While BTC continues to increase its share, some analysts suggest that its dominance may gradually decline. An analyst at Rekt Capital notes that BTC may continue to grow to 60% or higher, but other experts believe that its dominance may fall to 35% by mid-2025.

Another important point is that such a decline in Bitcoin could lead to a new «altcoin season» — a period when altcoins are actively growing in the market. However, there are different forecasts as to how long the current trend of Bitcoin’s dominance will continue.

Against this backdrop, cryptocurrency markets continue to decline, and the total market capitalization has fallen to $ 2.11 trillion. Despite the fact that Bitcoin has regained the $ 58,000 level, Ethereum has not yet managed to rise above $ 2,300, which may indicate a further struggle for market share between the two largest cryptocurrencies.