Bitcoin dominance rises again, but is altcoin season already over?

Bitcoin dominance is once again taking the upper hand, edging back towards 60%, which suggests the market is willing to take on more risk. But does that also mean altcoin season is already over?

Jobs data

Weak jobs figures from the United States did little for crypto market sentiment just before the weekend. With only a month to go until the closely watched midterms, the economic data will not exactly help Donald Trump’s Republican party.

Even so, the impact on Bitcoin appears limited for now. The world’s largest cryptocurrency is holding up relatively well and continues to outperform the bulk of altcoins. That is also reflected in Bitcoin dominance, a measure of what share of the total crypto market value is made up of Bitcoin.

Dominance has climbed again in recent weeks towards the 60% threshold. Many analysts regard that level as an important psychological marker. When investors grow uncertain about the economic outlook, they typically opt for the relatively safer choice within crypto, namely Bitcoin. Altcoins often struggle as a result.

That does not, however, automatically mean altcoin season is over. Historically, markets have repeatedly seen periods in which Bitcoin took the lead first, after which capital still trickled down to smaller projects later on. Many traders therefore speak of a temporary pause rather than a definitive end to the altcoin rally.

Battle

In addition, institutional interest in Bitcoin remains strong. Spot ETFs continue to attract capital, and many professional investors increasingly see Bitcoin as a digital alternative to gold. That inflow supports the price and reinforces the coin’s dominance.

For altcoins, the key factor in the coming weeks will be an improvement in market sentiment. A stabilisation of the economy, falling interest rate expectations or a fresh upward push for Bitcoin could once again spur greater risk appetite.

For now, then, Bitcoin appears to be king of the crypto market once again. But as long as the overall market remains strong and liquidity is present, it is probably still too early to write off altcoin season for good. The battle between Bitcoin and the rest of the market is far from decided.