Cryptocurrencies are experiencing a cycle unlike anything we’ve seen on the market so far. Since the beginning of 2023, we have been observing a remarkable and extremely balanced progression, indicating a significant shift in investor behavior as well as the market structure itself.

Bitcoin clearly dominates and overshadows other cryptocurrencies

According to analytical charts from TradingView, Bitcoin has recorded the most stable growth in its history, with only three corrections exceeding 30% over three years. Compared to previous periods, when deeper drops occurred more frequently, this represents record calm conditions.

Many attribute this stability to the approval of spot ETFs in the US at the beginning of 2024. This move brought a new, more conservative audience into traditional finance, who behave less impulsively than typical crypto speculators. Regular purchases by large asset managers acted as a stabilizer. Their capital mitigated panic sell-offs and provided the market with a consistent flow of liquidity.

Interestingly, stability is not the only surprise. Bitcoin has gradually decoupled from the rest of the digital assets, and altcoins have started moving at their own pace. As a result of this imbalance, there has been a remarkable increase in Bitcoin dominance, which has gradually risen from 39% to approximately 59% during the long cycle, representing a 52% increase.

A higher market share means that capital flows primarily into Bitcoin, while altcoins remain a secondary choice for many investors. Such dominance usually rises in uncertain times. But this time, it is rising even during growth, suggesting that Bitcoin has gained a completely new status – it is perceived more as a digital safe-haven asset.

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Altcoins without season: why nothing came this time

In previous cycles, it was common that after a significant Bitcoin rally, a dynamic altcoin season would follow. This time, nothing of the sort occurred. Even a new all-time high for Bitcoin did not trigger a thirst for riskier projects.

The reason is a combination of several factors:

• more cautious capital coming through ETFs,
• lack of strong innovations,
• shift of retail investors to more conservative assets, and
• the fact that a large portion of altcoins lost trust after previous bubbles.

The result is a cycle in which Bitcoin dominates like never before, while altcoins remain in the background, waiting for a new stimulus that has yet to arrive.

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