Bitcoin Dominance Reaches 3.5-Year High as Altcoins Struggle

Bitcoin’s market dominance surged to its highest point since April 2021, driven by a rising price while the altcoin market remained subdued.

On October 15, Bitcoin dominance reached 58.77%, its strongest position in over three years, coinciding with the cryptocurrency hitting a 10-week high of $67,800, as per TradingView data. The price briefly pulled back to $64,880 before stabilizing just above $67,000, bringing Bitcoin’s market cap to $1.32 trillion.

Historically, when Bitcoin dominance rises, altcoins tend to struggle, and this trend continued as Bitcoin gained 2.5% on the day, while most altcoins remained flat or saw declines.

Some traders, however, believe Bitcoin’s dominance won’t last long. They argue that once Bitcoin dominance peaks, the door could open for altcoins to rally. On October 16, ICT Crypto founder Benjamin Cowen suggested Bitcoin dominance could top out at around 60%. Meanwhile, crypto analyst Coach K Crypto told his 129,000 followers on X (formerly Twitter) that Bitcoin’s dominance has likely peaked for this cycle, hinting that altcoins could see a breakout once Bitcoin has its run.

“There’s likely to be a breakdown in Bitcoin dominance soon,” Coach K said. “That’s when we’ll see memecoins and major altcoins come alive.”

On October 14, analyst Moataz Elsayed also predicted a significant drop in Bitcoin’s dominance, forecasting an impending altcoin season.

Ethereum (ETH), often a leader when Bitcoin dominance wanes, has struggled recently. The ETH to BTC ratio, which reflects how much Bitcoin is worth relative to Ethereum, dropped to levels not seen since April 2021, dipping below 0.039 this week, according to TradingView.

Bitcoin has remained relatively flat since reaching an all-time high of $73,738 in March, but now it’s nearing a crucial psychological barrier at its 2021 high of $69,000.

Institutional interest in Bitcoin remains strong, with U.S. spot exchange-traded funds (ETFs) seeing net inflows of $371 million on October 15. Over the past three trading days, inflows have totaled more than $1.1 billion, according to data from Farside Investors.

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