05 August 2025
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Bitcoin and its dominance — meaning BTC’s share of the total cryptocurrency market capitalization — has experienced a significant decline over the past three weeks. According to data from TradingView, it dropped from 66% to 60.50%, representing a loss of 8.33%. This is the largest drop in 2025 and also the second-largest decline in the current bullish cycle, which began at the start of 2023.
BTC dominance experiences the biggest drop of 2025
Since the beginning of 2023, we’ve seen a stable and continuous rise in BTC dominance. Such a long-term trend is rare in Bitcoin’s history. This means that in recent years, investors have preferred Bitcoin over altcoins, while BTC was strengthening its leading position.
However, the current development may signal the start of a major shift in market dynamics. Although dominance attempted a rebound — twice — after the drop, both attempts failed. This is a sharp contrast to December 2024, when a similar drop was followed by an immediate return to higher levels.
- Important note: Dominance is an important indicator, but it should be used only as a supporting tool for building trading strategies. It cannot be relied upon as the sole decision-making factor. Investors should combine multiple analytical approaches and invest with caution and rationality.
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Bitcoin below 60%: what it means for the market and investors
If Bitcoin dominance truly falls below the psychological threshold of 60%, the market might interpret it as a signal for capital rotation into altcoins. A drop in BTC dominance could thus mark the beginning of a new altcoin season — a period during which altcoins significantly outperform Bitcoin. For investors, this presents multiple scenarios:
- On one hand, it could increase their willingness to take risks and shift capital from conservative Bitcoin into more dynamic projects.
- On the other hand, it may be a warning that confidence in Bitcoin’s dominance is weakening.
In either case, a drop below 60% would mark a shift in the market that should be closely monitored.
However, a drop in Bitcoin dominance doesn’t automatically signal the start of an altcoin season. It may simply mean that altcoins are also falling, just at a slower pace than Bitcoin. In that case, the decline in dominance is relative, not due to a major capital inflow into altcoins.
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