Bitcoin
has strengthened its position as the leading cryptocurrency this weekend, achieving a new peak value and drawing investment away from other digital currencies.
The primary cryptocurrency experienced a significant surge, gaining 11% over the past week and reaching an unprecedented high of $125,506, based on data from CoinGecko. Consequently, Bitcoin’s share of the total cryptocurrency market capitalization climbed to 59%, marking a three-week high for market dominance.
Experts, speaking with Decrypt, attribute Bitcoin’s impressive climb to a number of contributing factors.
Stephen Gregory, founder of the cryptocurrency trading platform Vtrader, explained to Decrypt that key factors included last week’s increase in the stablecoin market cap to $300 billion, as well as the release of $1 billion in previously inaccessible funds from the now-defunct FTX exchange.
Gregory stated, “This boosted capital flowing into Bitcoin, pushing its dominance to almost 60%.”
Shivam Thakral, CEO of the Indian cryptocurrency exchange BuyUcoin, told Decrypt, “It’s quite common for investors to initially invest heavily in Bitcoin during bull markets.” He described Bitcoin as the “market’s anchor,” a perception that’s been reinforced by renewed interest from larger institutional investors.
Echoing this sentiment, Gracy Chen, CEO of Bitget, characterized the dominance metric as “a clear indication of capital converging on the market’s most reliable asset, driven by increased institutional demand and broader market volatility.”
Bitcoin Hits New All-Time High Price Above $125,000
A key question for investors is whether this Bitcoin-focused surge means the end of the much-anticipated “altcoin season,” a period where alternative cryptocurrencies perform exceptionally well.
Experts suggest it is not yet over.
“This doesn’t necessarily signal the end of alt season,” Gregory commented, while also advising caution. While a shift towards altcoins remains possible, Gregory suggests that weakening bullish momentum for Bitcoin could create a “bear trap that could eliminate excessive leverage” before the market continues its upward trajectory.
He added that, under these circumstances, if Bitcoin’s market dominance fails to significantly exceed 60%, funds may quickly shift, “leading to an altcoin pump.”
Users of the Myriad prediction market, launched by DASTAN, the parent company of Decrypt, estimate approximately a 60% chance that Bitcoin’s dominance will surge to 64%, rather than declining to 54%, which is a decrease from 69% at the beginning of the month.
Chen believes that “a true altseason” may still be several weeks away, awaiting Bitcoin’s consolidation to initiate a capital shift of available liquidity into promising sectors such as AI, DeFi, and layer-2s.
She advised investors to watch for a crucial sign: Bitcoin’s dominance dropping below 55%, which could signal the start of altcoin momentum.
Despite short-term uncertainty surrounding the capital flow, overall market sentiment remains favorable. “It’s a very positive time for the markets, and that is likely to remain the case in the near future,” said Le Shi, managing director at the algorithmic trading and market-making firm Auros, in a conversation with Decrypt during Token2049 in Singapore the previous week.