Bitcoin Dominance Hits 4-Year High, Altcoins Stir

Key Takeaways
Bitcoin has reached a new dominance milestone with over 64% market share – a level last surpassed in 2021. Back then, a strong altcoin rally followed. This time as well, there are technical indications of a potential rotation of capital from Bitcoin into altcoins. However, despite these signs, market dynamics remain unclear. Some altcoins like Solana are already showing significant price gains. Whether this will lead to a new altcoin season remains uncertain.
Bitcoin Dominance Reaches New 4-Year High
On April 7, 2025, Bitcoin dominance (BTC.D) closed at 64% – the highest level since early 2021. Dominance refers to Bitcoin’s share of the total market capitalization of all cryptocurrencies. An increase in this metric means Bitcoin is outperforming other coins.
From a technical perspective, such a high value often signals overheating. The Relative Strength Index (RSI) – an indicator used to assess overbought or oversold conditions – was above 80. This suggests a possible short-term exhaustion of Bitcoin.
Altcoins Show Early Signs of Life
While Bitcoin expanded its dominance, the market capitalization of altcoins (all cryptocurrencies except Bitcoin) rose by 42 billion USD. Solana (SOL) stood out in particular, posting double-digit gains in one week. The Altcoin Market Index – an indicator of the relative strength of altcoins – also recovered from 13 to 20 points.
This development is reminiscent of 2021. At that time, BTC.D reached a local high while the Altcoin Market Index hit a low. Shortly afterward, a massive rotation into altcoins followed, which continued into the first quarter of 2022.
Technical Signals Indicate Possible Rotation
The current market situation shows parallels to previous cycles. The combination of high BTC dominance, an overbought RSI, and capital inflows into altcoins could indicate an upcoming redistribution. The 3.65% drop in Bitcoin on April 8 also confirms a short-term correction movement.
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Nevertheless, many investors have remained cautious so far. Despite the technical signals, a clear capital shift has yet to materialize. BTC.D rose again above 64% after a brief dip and stabilized at a high level. This suggests that Bitcoin will likely maintain its leadership role for now.
What Does This Mean for You as an Investor?
If you are investing or planning to invest in altcoins, you should closely monitor market developments. Technical indicators like BTC.D and RSI provide clues about potential trend reversals. The Altcoin Market Index can also serve as an early indicator.
Currently, there are several signs pointing to a possible altcoin season in the third or fourth quarter of 2025. However, as long as Bitcoin maintains its dominance, a clear shift remains elusive. Patience and a strategic view of market data are now crucial.
Our Assessment
The current Bitcoin dominance suggests that the market may be at a turning point. Technical patterns and historical comparisons point to a possible repeat of the 2021 cycle. Early altcoins like Solana are already showing strength. But without a sustained rotation, the altcoin season remains theoretical for now.
For you as an investor, this means: keep a close eye on the development of BTC.D. A drop below 60% accompanied by a rise in the Altcoin Index would be a strong signal for an upcoming altcoin rally. Until then, it’s best to choose positions carefully and wait for clear signals.