Bitcoin (BTC) Dominance and its Impact on Altcoins: Long-Term Outlook for Altcoins May 2025

Updated

April 24, 2025

Gambar Bitcoin (BTC) Dominance and its Impact on Altcoins: Long-Term Outlook for Altcoins May 2025

Jakarta, Pintu News – Although the altcoin market has shown a recovery in the past two weeks, investors should remain vigilant. Bitcoin’s growing dominance suggests that altcoins are still under pressure. Ethereum , as the largest altcoin, has experienced a sharp decline since January, with a price drop of 56.6% from its peak of $3,744. Declining network activity and transaction fees further reinforce this bearish outlook.

Bitcoin’s (BTC) Dominance and its Impact on Altcoins

Bitcoin’s (BTC) dominance in the crypto market has reached 63.8%, a level that was support in early 2020 and is now turning into resistance in 2021. This shows that Bitcoin (BTC) is still the top choice over altcoins. This increased dominance indicates that investors may prefer to invest in Bitcoin (BTC) over altcoins.

This high dominance also reflects investors’ lack of confidence in altcoins, including Ethereum (ETH). Despite price increases in the short term, the long-term trend still shows that altcoins are not ready for a big rally. Investors should consider this factor before making investment decisions that may be risky.

Also Read: Gold or Bitcoin: Which is a Safe Investment Amid US-China Tensions?

Ethereum (ETH) and Its Impact on the Altcoin Market

Ethereum (ETH) is often considered a barometer for the altcoin market due to its large size and significant influence. However, with the continuous decline since the beginning of the year, confidence in Ethereum (ETH) has further decreased. This has not only affected the price of Ethereum (ETH) but also the overall altcoin market sentiment.

Decreased network activity and lower fees on Ethereum (ETH) is another indicator of a bearish market. This suggests that the use and adoption of Ethereum (ETH) in real applications is declining, which could bode ill for other altcoins that often follow in Ethereum’s (ETH) footsteps.

Long-term Outlook for Altcoins

Despite some price recovery in the short term, the altcoin market is still not showing any signs of long-term strength. The altcoin seasonality index, which currently stands at 20, shows that it is still Bitcoin (BTC) season. This shows that most of the top crypto assets are still underperforming compared to Bitcoin (BTC) in the last 90 days.

For altcoins to show long-term strength, they need to get past the last lower high, which was recorded at $780 billion. Without a significant change in these factors, it is difficult to see a major rally in the near future for altcoins.

Conclusion for Altcoin Investors

Investors hoping for a big rally in the altcoin market based on the price increases of some tokens in the past two weeks should remain cautious. While the short-term outlook may look bullish, there are long-term forces at work that will make a big rally in the altcoin market difficult to achieve. Understanding these dynamics is important for making informed investment decisions.

Also Read: Polkadot (DOT) Preparing to Surpass Resistance, Is it Time to Buy?

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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.