Bitcoin Dominance Set to Soar: 3 Compelling Reasons Why Altseason Faces Major Threat

Bitcoin isn't done flexing its muscles yet—strategists see dominance climbing to new heights as altcoins face mounting pressure.

The King's Comeback Trail

Market analysts pinpoint three critical factors driving Bitcoin's resurgence: institutional accumulation patterns, regulatory clarity favoring established assets, and shifting risk appetites among major funds. While altcoins flirt with temporary rallies, Bitcoin's infrastructure maturity creates an undeniable gravitational pull.

Institutional Winds Shift

Wall Street's crypto playbook increasingly favors Bitcoin's relative stability over altcoin speculation. Recent ETF flows show capital rotating back toward the original cryptocurrency as macro uncertainty persists. Traditional finance's embrace continues validating Bitcoin's store-of-value narrative while leaving altcoins searching for utility cases.

The Regulatory Advantage

Bitcoin's regulatory positioning as a commodity—not a security—provides clear runway while altcoins face escalating scrutiny. This structural advantage allows institutional players to deploy capital without legal ambiguity. Meanwhile, altcoin projects navigate an evolving compliance landscape that changes by jurisdiction.

Market veterans note that dominance rebounds typically precede major altcoin liquidations—because nothing tests conviction like watching Bitcoin rip while your altcoin portfolio dips. The smart money's betting on the original crypto heavyweight to keep throwing its weight around.

Bitcoin Trend Around the 20W and 50W SMA/Benjamin Cowen The analyst shared that this price development will see altcoins capitulate. Currently, the 50-week SMA stands at $95,860, which is an 11% drop from the current market price. If this does happen, he asserts that altcoins would record an over 30% price retracement. Altcoins to Bleed if Bitcoin Consolidates at 20W SMA Finally, Cowen shared the last development. Here, he noted that if BTC consolidates around the 20-week SMA throughout September, as it did in 2022, then altcoins will likely slowly bleed. As a result, the analyst concluded that regardless of the direction of Bitcoin, its market share will likely rebound from recent lows to higher levels. According to him, the crypto market may be resuming its final rotation into Bitcoin during this bull cycle. Remarkably, this might pause the much-anticipated altcoin season, as a BTC dominance growth does not historically go hand in hand with an altcoin price explosion. The prospect of this bullish altcoin phase gained momentum when analysts highlighted last week that the BTC dominance had broken below a 2-year trendline. How Bitcoin and its dominance react in the coming days will determine whether altcoins will sustain their current outperformance or yield to the crypto leader’s preeminence.