Bitcoin Devours Market Attention With 30% Surge—Do You Double Down or Diversify?

BTC’s bull run leaves altcoins gasping for liquidity as capital floods into the king of crypto. Traders face a brutal choice: ride the momentum or hunt for oversold gems.

HODL or rotate? The 30% pump sparks debate—while maximalists cheer, altcoin bagholders watch their portfolios wither. Classic crypto: one asset’s feast is another’s famine.

Bonus jab: Wall Street still can’t decide if this is a ’store of value’ or a casino chip—meanwhile, Bitcoin keeps printing without their permission.

Bitcoin dictates market trends, and buying power was drying up

Source: BTC.D on TradingView

The Bitcoin Dominance (BTC.D) chart tracks BTC’s share of the total crypto market cap. A rising trend indicates that Bitcoin’s capitalization was growing faster than the altcoin market.

This uptrend has been the case since 2023.

A brief dip in November 2024 failed to break the structure. Even the recent sharp decline didn’t invalidate the broader trend.

Source: TOTAL2 on TradingView

Altcoin investors should not get their hopes of recovery up yet. The best thing they can do is hold on, especially if underwater.

Because the altcoin market cap has lacked a strong trend in May, meandering about the $1.2 trillion mark instead.

Combined with the rising BTC Dominance, it signaled that altcoins were not seeing outstanding capital inflows.

Stablecoin data reveals deeper trends

Source: CryptoQuant

In 2024, the Tether reserves on all exchanges shot higher.

The metric reached its current peak in February, at $43.696 billion. Rising Stablecoin Reserves on exchanges indicated increased buying power in the market.

This pattern generally accompanies explosive Bitcoin and altcoin rallies. As the leading stablecoin by size, Tether provided a good look into the sentiment of market participants.

Despite the peak in February, the falling Tether reserves in 2025 indicated dwindling buying power. This helped explain the slowdown in the altcoin market cap growth.

The Bitcoin rally could be explained by institutional interest, such as through ETFs.