Bitcoin Hits $111K as Altcoins Lag Behind

Key Takeaways
- Since April 2025, Bitcoin has risen by 30% and reached a new all-time high of $111,880 USD.
- Altcoins have stagnated for several weeks – capital is primarily flowing into Bitcoin.
- Bitcoin Dominance (BTC.D) continues to rise, highlighting BTC’s market leadership.
- Declining Tether reserves suggest decreasing purchasing power in the market.
Bitcoin Attracts Capital – Altcoins Lag Behind
Since April 20, 2025, Bitcoin has shown a clear upward trend. The $86,300 USD level turned into support, after which BTC gained 30% within 30 days. The new all-time high now stands at $111,880 USD. Despite a slight decline of 5.4% over the past week, the overall trend remains intact.
In contrast, the altcoin market appears weak. For nearly three weeks, the market capitalization of altcoins has remained flat at around $1.2 trillion USD. This development suggests that investors are reallocating their capital primarily into Bitcoin.
Bitcoin Dominance Indicates Clear Direction
Bitcoin Dominance (BTC.D) measures Bitcoin’s share of the total cryptocurrency market capitalization. An increase in this metric means Bitcoin is growing faster than the rest of the market. Since 2023, BTC.D has been rising steadily, interrupted only by short corrections, such as in November 2024.
Even the most recent dip hasn’t broken the overall upward trend. Bitcoin’s dominance remains a strong indicator that BTC currently leads the market.
Lower Purchasing Power Due to Falling Tether Reserves
Another sign of weak momentum in altcoins is the development of Tether (USDT) reserves on crypto exchanges. Tether is the largest stablecoin and is often used as a liquidity indicator. High reserves indicate buying interest – declining reserves, on the other hand, suggest decreasing demand.
In February 2025, Tether reserves peaked at $43.7 billion USD. Since then, they have been steadily declining. This trend shows that less fresh capital is entering the market – especially into altcoins. Bitcoin’s rise, however, may be supported by institutional investors, such as through exchange-traded funds (ETFs).
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What Does This Mean for You as an Investor?
If you are currently invested in altcoins, patience is key. The market environment does not favour short-term gains outside of Bitcoin. Those who have already incurred losses should consider holding (HODL) rather than selling in panic.
For new investments, Bitcoin currently appears to be the better option. Its dominance and institutional interest support a continuation of the trend. Altcoins may only pick up again once fresh capital returns to the broader market.
Our Assessment
In 2025, Bitcoin remains the pace-setter of the crypto market. The combination of rising dominance, institutional interest, and stagnating altcoins points to a clear shift in capital. Those aiming for short-term gains currently have better chances with Bitcoin. Altcoin investors should prepare for a prolonged dry spell.
Sources
- TradingView
- CryptoQuant