The Dominance of Bitcoin Soars: 71% Is It the Key to the Altcoin Season?

Bitcoin has solidified its position as the market leader in this cycle, attracting the majority of capital inflows and strengthening its dominance. Currently, Bitcoin's market dominance is at 60.3%, marking a 4% increase in just 24 hours. Analysts, including renowned cryptocurrency researcher Rekt Capital, believe that a dominance level of 71% could be a significant turning point, signaling the start of the altcoin season. The increasing dominance of Bitcoin in the market Bitcoin (BTC Dominance Chart. D) measures Bitcoin's share of the total cryptocurrency market capitalization. The index has risen throughout this market cycle, even during price corrections. Several factors have driven Bitcoin's growing dominance: Organizational demand: The launch of the Bitcoin spot ETF has attracted institutional investors, leading to a significant influx of capital. Bitcoin as a reserve asset: Some countries and corporations are accumulating Bitcoin as a strategic reserve, further strengthening its dominance. Market confidence: In the context of uncertain legal regulations and volatility in the cryptocurrency market, Bitcoin is considered the safest investment in the cryptocurrency sector. Altcoins are struggling to compete The dominance of Bitcoin has suppressed the altcoin market, preventing a major breakthrough. While some altcoins like Solana (SOL) and XRP have outperformed Bitcoin in the short term, capital continues to flow back to BTC. This trend makes it difficult for altcoins to maintain long-term upward momentum. However, historical patterns suggest that a reversal in Bitcoin dominance could trigger an altcoin season. Cryptocurrency researcher Rekt Capital points out that historically, Bitcoin has failed to surpass the 71% dominance level, leading to market shifts in favor of altcoins. Historical pattern: What happens at 71%? Looking at previous cycles, Bitcoin's dominance reached a peak of 72% in the bullish market of 2021 before experiencing a sharp decline in the following months. During this phase, altcoins surged, with Ethereum leading the way. In 2017, a similar pattern occurred when Bitcoin dominance peaked, followed by a strong rally in altcoins. If Bitcoin once again reaches 71%, investors should closely monitor signs of rejection, as history has shown that such a scenario can trigger a capital rotation into altcoins. Will this year's Altcoin season be different? While previous altcoin seasons were dominated by Ethereum (ETH), this time the leading position may change. Some factors may reshape market dynamics: The improvements in Layer 1 and Layer 2: Solana, Avalanche, and other scalable networks could lead the next altcoin wave. Developments in regulation: Tighter supervision of centralized projects could impact which alternative currencies receive attention. Bitcoin ETF vs Ethereum ETF: If Ethereum's ETF is approved, it could drive capital inflow and benefit the overall altcoin market. Final thoughts: Patience is key Bitcoin dominance remains strong, at 60.3%, still far from the critical level of 71%. Investors hoping for an altcoin revival may have to wait longer. However, if history repeats itself, rejection at 71% could spark the altcoin season. Currently, Bitcoin continues to lead the market. Whether altcoins truly break out depends on the ability to maintain Bitcoin's dominance or whether history repeats with another rejection at 71%.