Bitcoin Dominance Hits Staggering New High – Is This the End for Altcoins?
Bitcoin just flexed its muscles again—crushing altcoins under its heel as dominance rockets to fresh local peaks. The king isn't just back on the throne; it's bulldozing the palace gardens to build a moat.
Market Shakeout or Mass Extinction Event?
While ETH and BNB cling to their top-5 rankings like overpromoted middle managers, smaller alts are getting vaporized faster than a meme stock portfolio. Trading volumes tell the story: BTC pairs now command 60% of all crypto trades while alt liquidity evaporates like cheap perfume.
The institutional cavalry isn't coming for your shitcoins either. With BlackRock's BTC ETF sucking up $25B in AUM and Grayscale converting their GBTC wreckage into a proper ETF, smart money's playing the board game—not the slot machines.
Last Cycle's Dead Cat Bounce?
Sure, some degenerate corners of Crypto Twitter will scream 'alt season incoming' between hits of hopium. But with Bitcoin's hash rate at all-time highs and Layer 2 solutions finally working (shocking!), the innovation narrative doesn't belong to ERC-20 tokens anymore.
Here's the cold truth: when TradFi finally adopts crypto, they're buying the blue-chip index—not your aunt's favorite 'Web3 gaming token' that's actually just a PNG with extra steps. The SEC's lawsuits didn't help either—thanks for the regulatory clarity, Gary!
So are alts doomed? Not necessarily—but they'll need more than viral tweets and vague partnerships to survive this Darwinian market. Meanwhile, Bitcoin keeps doing what it does best: making early believers rich and latecomers wish they'd listened.
Bitcoin Dominance just continues up and to the right
Source: TradingView
The bitcoin Dominance chart (BTC.D) reveals that dominance has been moving up and to the right since September 2022. Having just made yet another local high, dominance is currently knocking on the door of the 65.6% resistance. Once and if this is breached, the next resistances are at 68% and 70.3%, with 73.6% marking a new macro higher high.
Looking to the future, many investors must be beginning to wonder if the combined altcoin market will ever be able to take the limelight from Bitcoin for any extended period of time, like it did in the past.
Total3 at critical support
Source: TradingView
Given the woes of Ethereum, the Total3 chart can provide some clues as to how the altcoins could perform over the next week or so. It can be seen that Total3 is at a very critical juncture. The support at $775 billion is absolutely crucial for the bulls to hold, and is bolstered by the top of a previous bull flag. However, if Total3 should fall through here, $670 billion WOULD be the next major support level.
Will $SOL fall through the last major support?
Source: TradingView
A key canary in the coal mine for the altcoins is $SOL, given that the solana blockchain is responsible for the vast majority of transactions across all major altcoin networks.
It can be seen in the weekly chart for $SOL that the price has sunk into the very strong and critical band of support that stretches down to $125.
With the Stochastic RSI indicator lines heading downwards, the price may well fall through this last major support and head down to $100, and even possibly down to $75.
That said, if $BTC is able to turn things around, which is quite likely given that the bull market cycle has probably not finished, the maxim of “lifting all boats” would most certainly apply to $SOL, giving this LAYER 1 leader the potential to rise back to its previous highs.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
