Bitcoin Dominates as Altcoins Stagnate – Is This the New Normal?

Bitcoin tightens its grip on the crypto market while altcoins bleed momentum—again. Is this the start of a prolonged BTC hegemony, or just another cycle playing out?

King BTC flexes its muscles

The original cryptocurrency continues to suck oxygen out of the room, leaving altcoin projects gasping for attention (and liquidity). Market patterns from previous cycles suggest this dominance phase could last months—bad news for the 'altseason' hopium crowd.

Altcoins: Down but not out?

While top-tier alts like ETH show relative resilience, mid-cap projects are getting crushed. Traders chasing the next 100x are discovering that 100x of zero is still zero—a painful math lesson Wall Street veterans know all too well.

The big question: Will institutional money finally break Bitcoin's dominance cycle, or will crypto's first-mover advantage prove unbeatable? One thing's certain—when the tide turns, it won't wait for your portfolio rebalance.

Altcoin lag as buy/sell gap deepens

The 1-year cumulative buy/sell quote volume difference for altcoins has plunged to -$36B, its lowest point since 2022. This trend shows a glaring lack of investor conviction in the altcoin space.

Source: CryptoQuant

While Bitcoin has notched new all-time highs, altcoins remain in a net-sell zone, suggesting that most market participants are still risk-off when it comes to anything beyond BTC and ETH.

Positive flips in this metric have coincided with short-lived alt rallies. But as of June 2025, the sustained bleed implies that even in bullish macro conditions, altcoins haven’t shaken off their bear-market inactivity.

BTC.D breaks out, alts get left behind

Bitcoin’s market cap dominance has surged to nearly 65%, climbing over 1% since mid-June and reinforcing its grip on capital flows.

Source: Trading View

The data showed a sharp, near-parabolic rise in BTC dominance, driven by bitcoin ETFs, institutional inflows, and macro hedge demand.

This surge often sidelines altcoins, as capital concentrates in Bitcoin as the crypto “safe haven.”

David Hernandez, crypto investment specialist at 21Shares, told AMBCrypto,

“Bitcoin has firmly cemented itself above $100,000, and its resilience amid geopolitical shocks demonstrates its widespread adoption and developing investment case.”

He went on to add,

“As confidence in a perfectly engineered ‘soft landing’ wanes, and as global financial currents diverge, Bitcoin’s fundamental properties – its scarcity, decentralization, and neutrality – make it an increasingly relevant and compelling asset for investors navigating an uncertain future.”

Historically, rising BTC.D signals weakness for altcoins, and unless it reverses, even strong alt projects may stay suppressed and out of favor.

What will it take for altseason to arrive?

For altcoins to regain dominance, several conditions need to align.

This includes a stall or consolidation in Bitcoin’s rally, renewed risk appetite across retail investors, and a reversal in the 1-year buy/sell volume differential. This WOULD suggest capital rotation is underway.

Altseason typically follows BTC cooling off after a major run. This leads to speculative capital seeking higher returns in smaller caps. But right now, there’s no indication of that shift.

Until alt liquidity improves and BTC.D retreats, hopes for an altcoin supercycle may remain on hold.