Bitcoin Dominance Grows as Altcoin Market Faces Slowdown Amid Declining Buying Power
The post Bitcoin Dominance Grows as Altcoin Market Faces Slowdown Amid Declining Buying Power appeared on BitcoinEthereumNews.com.
The altcoin market has hit a plateau following its robust performance earlier in May, signaling a shift in investor dynamics within the cryptocurrency ecosystem. The rising Bitcoin Dominance (BTC.D) alongside a stagnant altcoin market cap indicates Bitcoin’s resurgence as the focal point of capital flows. Ongoing declines in Tether reserves throughout 2025 have contributed to this overarching trend, highlighting a cautionary tale for altcoin enthusiasts. This article explores the current crypto landscape, focusing on Bitcoin’s dominance and the stagnation in the altcoin market, providing insights into potential future trends. Bitcoin dictates market trends as buying power dwindles The recent behavior of Bitcoin has played a crucial role in shaping the market narrative. Since April 20, when Bitcoin flipped the $86.3k threshold from resistance to support, the momentum has been primarily bullish. Over a 30-day period, Bitcoin surged approximately 30%, setting a new all-time high of $111,880. However, this rally has not been without its corrections. A notable 5.4% retracement occurred in the past week, with a marginal 1.2% dip in the last 24 hours, suggesting increasing volatility. In stark contrast, the altcoin market has been largely stagnant, reflecting a growing trend of capital allocation towards Bitcoin. This shift indicates a prevailing market sentiment that favors Bitcoin over altcoins for the foreseeable future. Source: BTC.D on TradingView The Bitcoin Dominance (BTC.D) chart illustrates Bitcoin’s share of the overall crypto market cap. An escalation in this metric signifies Bitcoin’s market capitalization is expanding at a faster pace than that of altcoins. This trend has been evident since the year 2023, with brief dips failing to disrupt the bullish trajectory. Source: TOTAL2 on TradingView For investors holding altcoins, optimism may be tempered. The lack of a strong upward trend in May, with the market cap hovering around $1.2 trillion, suggests limited capital inflows…
