Bitcoin continues to dominate the cryptocurrency market, holding around 63.9% of the total market cap after reaching a peak of 65.3% in May. This strength has historically preceded a shift towards altcoins, but the expected transition hasn’t occurred meaningfully this time, leaving many asking when the altcoin season will commence.

Institutional Investors Influence

The entry of institutional investors plays a significant role, making Bitcoin a preferable choice due to its regulatory position and market stability. With the introduction of Bitcoin ETFs, there has been a substantial influx of capital into BTC, leading to a situation where traders are less inclined to invest in altcoins.

Bitcoin’s Continued Dominance

According to dominance charts, Bitcoin’s market share has steadily increased since late 2022. In contrast to the 2020-2021 bull run - when Bitcoin dominance reached around 73% before dropping - the current phase shows no signs of reversing. This consistent performance makes Bitcoin a safer bet compared to many struggling altcoins, which are still faced with regulatory uncertainties and centralization risks.

Ethereum’s Performance

While Ethereum has remained stable against the US dollar, it has underperformed against Bitcoin. This trend suggests that holding Bitcoin has been more profitable than Ethereum over almost two years.

Jess Houlgrave, CEO of Reown, states that many altcoins are driven more by hype than by fundamental value, making it difficult for capital to shift from Bitcoin at this point.

The Future for Altcoins

Some crypto analysts believe that a significant altcoin season could commence soon, possibly in late 2025, as Bitcoin stabilizes and investors seek potentially higher returns from altcoins.

Key Conclusions

• Current Bitcoin dominance near 64% indicates a delay in a broader altcoin rally.
• Institutional flows into Bitcoin are diminishing interest in altcoins.
• Ethereum shows accumulation signs, yet short positions are rising, preventing price increases.
• An altcoin season might begin as new capital looks for greater returns following Bitcoin’s plateau.