Bybit Report Highlights Institutional Demand Sustaining Bitcoin Dominance

Bitcoin's market dominance continues to defy historical post-halving trends, remaining stubbornly high as institutional accumulation through ETFs and corporate treasuries channels capital into BTC. This has created a liquidity bottleneck for altcoins, delaying the anticipated altseason. The Bybit-Block Scholes report highlights a structural shift in the market, with BTC's dominance curve diverging from previous cycles where capital typically rotated into ETH and other altcoins. As of August 2025, the sustained institutional interest in Bitcoin is reshaping market dynamics, keeping altcoins under pressure despite the usual post-halving rally expectations.

Institutional Demand Sustains Bitcoin Dominance, Delaying Altseason

Bitcoin's market dominance remains stubbornly high, defying historical post-halving patterns that typically trigger altseason rallies. Institutional accumulation through ETFs and corporate treasuries continues to funnel capital into BTC, creating a liquidity bottleneck for altcoins.

The Bybit-Block Scholes report reveals a structural shift: BTC's dominance curve has diverged from previous cycles where rotation into ETH and smaller altcoins began ~230 days post-halving. Ethereum's recent gains and ETF inflows suggest nascent rotation potential, but overall altcoin sentiment remains subdued compared to prior cycle peaks.

Market veterans note this cycle lacks the characteristic 'risk-on' pivot from BTC to alts after record highs. The institutionalization of Bitcoin through regulated products appears to be rewriting crypto market dynamics, with capital now flowing through more traditional investment channels rather than speculative altcoin plays.

Palantir and Crypto's Role in Modern Warfare Financing

From North Korea's ballistic missile programs to Russia's sanctions evasion, cryptocurrencies like BTC have transitioned from symbols of financial liberation to instruments of geopolitical conflict. Intelligence sources estimate 40% of stolen crypto funds fuel Pyongyang's weapons development, with Lazarus Group's $1.5 billion ByBit heist underscoring the scale.

Ukraine's embrace of digital asset donations for military supplies now faces scrutiny as blockchain analytics reveal near-empty public wallets. Meanwhile, Russia's adoption of crypto workarounds demonstrates how decentralized networks simultaneously empower dissidents and circumvent international oversight.