FameEX Hot Topics | Bitcoin Dominance Reaches 3.5-Year High as Altcoins Lag Behind

Bitcoin's market share reached its highest level since April 2021 as its price continued to rise amid a quiet altcoin market. On October 15, Bitcoin's dominance hit a three-and-a-half-year peak of 58.77%, coinciding with a 10-week high of $67,800, according to TradingView. After a sharp retrace to $64,880, Bitcoin rebounded, trading just above $67,000, with a market capitalization of $1.32 trillion.

Historically, a rise in Bitcoin's dominance spells trouble for altcoins, and this pattern held as BTC gained 2.5% on the day, while altcoins remained mostly flat or declined. However, some traders believe this surge in dominance could be temporary, suggesting that a drop may pave the way for a potential altcoin rally.

In an October 16 post on X, ICT Crypto founder Benjamin Cowen predicted that Bitcoin's dominance might peak at around 60%. Similarly, crypto investor Coach K Crypto suggested that Bitcoin's dominance had reached its high for this cycle, telling his 129,000 followers that BTC “needs to rip” before the market can shift focus to altcoins. Analyst Moataz Elsayed echoed these views, predicting on October 14 that Bitcoin's dominance is “about to crash hard,” potentially triggering a new altcoin season.

Ether (ETH) often moves when Bitcoin's dominance decreases, but the ETH to BTC ratio has been struggling. TradingView data indicates that the ratio has dropped below 0.039, approaching its lowest level since April 2021, reflecting challenges for altcoins.

Since reaching an all-time high of $73,738 in March, Bitcoin has traded mostly sideways. However, it is now nearing a crucial level — its 2021 high of $69,000. Despite varied market dynamics, institutional interest in BTC remains strong, with U.S. spot exchange-traded funds (ETFs) seeing $371 million in net inflows on October 15. According to Farside Investors, these ETFs have accumulated over $1.1 billion in inflows over the last three trading days, highlighting continued confidence in Bitcoin.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.