Bitcoin dominates, is altcoin season about to start? Here’s what analysts think

Updated

March 4, 2025

Gambar Bitcoin dominates, is altcoin season about to start? Here’s what analysts think

Jakarta, Pintu News – Bitcoin’s (BTC.D) dominance in the cryptocurrency market fell below 50% after former US President Donald Trump announced that the US’s “Crypto Strategic Reserve” would include several altcoins. The move sparked speculation that altcoin season may be upon us.

Meanwhile, the overall crypto market capitalization increased by 8%, reaching IDR 49,467 trillion ($3 trillion), driven by Bitcoin’s price surge past IDR 1,484,010,000 ($90,000). Despite BTC’s significant gains, BTC.D’s decline indicates a rotation of capital into altcoins, a trend that previously occurred before the altcoin market expansion.

The Effect of Altcoins on Market Changes

Altcoins such as Ripple , Solana , and Cardano experienced a price surge after being announced as part of the US strategic reserve. Investors started shifting their portfolios to these assets, accelerating the upward momentum of altcoins.

However, the decision to include altcoins in the strategic reserve has drawn criticism. Some argued that only Bitcoin should be included as a core asset. Trump later clarified that Bitcoin and Ethereum would be the core assets of the reserve, while altcoins were only ancillary. Nonetheless, high volatility persisted, with altcoins recording large gains before correcting again.

Also Read: Why is Ripple Still Fighting in Court Despite SEC Dropping Another Crypto Case?

Market Reaction: Rapid Rise and Correction

Bitcoin recorded a 9.44% gain, with XRP surging 34.13%, and ADA experiencing a historic 72.15% surge in a single day, returning to a price of IDR 16,489 ($1). However, after these gains, Bitcoin’s dominance returned, signaling that the altcoin market has not been able to maintain momentum.

Currently, BTC.D is back up to 61.44%, while altcoins such as XRP, ADA, and SOL have corrected more than 10%. This shows that despite capital rotation, altcoins are not strong enough to maintain their dominant position against Bitcoin in the long run.

Implications of Bitcoin’s Rise Back to Dominance

With Bitcoin’s dominance back on the rise, some analysts argue that capital flows to altcoins are only temporary. Bitcoin, which is still above IDR1,452,422,000 ($88,000), must maintain this support level to continue to show market strength.

The debate over liquidity strategies through altcoins continues. Some believe that it is a move to control the market structure, while others see it as an opportunity for altcoins to gain more attention. However, with Bitcoin’s dominance back on the rise, investors may start to shift back to BTC as the main asset in their portfolio.

Conclusion

Although Bitcoin’s dominance briefly dipped below 50%, signs that the altcoin season is about to arrive are still unclear. The rapid rise in altcoin prices followed by a significant correction shows that Bitcoin still dominates the market. With high volatility, investors should still be cautious in strategizing their investments in the dynamic cryptocurrency market.

Also Read: XRP Faces Hurdle at $2.4: Can Bulls Break Through? (4/3/25)

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.