Bitcoin Dominates: The Shift Delays the Altcoin Season

The recent geopolitical tensions and market uncertainties are impacting the expectations surrounding the altcoin season. Currently, major cryptocurrencies, including Bitcoin (BTC) $105,479 and Ethereum (ETH) $2,526 , are facing selling pressures, making investors seek safe havens. Experts suggest that the altcoin season is not canceled but merely postponed, primarily due to Bitcoin’s growing dominance and institutional investments focusing on BTC. Analysts, such as Mister Crypto, predict that the movement in the market will be more significant following the delay.

Bitcoin’s Market Dominance Delays Altcoin Season

Bitcoin’s dominance over the market is the main barrier preventing the onset of the altcoin season. The low levels of the “Altcoin Season Index” indicate that the market is still within a “Bitcoin Season.” Despite an increase in global liquidity, capital flows remain concentrated in Bitcoin.

The primary reason for this trend is the continuous inflow of institutional interests and the growing Bitcoin assets in the balance sheets of publicly traded companies. Since 2024, this number has increased by 2.3 times, surpassing 150 according to Blockware data. The success of Spot Bitcoin ETFs and the interest of individual investors also prevent capital from flowing towards altcoins. Furthermore, the Federal Reserve’s decision to keep interest rates unchanged restricts capital flow to riskier assets like altcoins.

Institutional Factors and Regulatory Developments Favor Bitcoin

Institutional investments and regulatory developments strengthen the dynamics in favor of Bitcoin. Although the stablecoin law approved by the U.S. Senate is considered a positive step for the entire cryptocurrency market, Bitcoin is expected to benefit the most. By legitimizing stablecoins, the law increases trust and facilitates new institutional entries.

This situation leads institutional capital and trust to initially flow into Bitcoin, the most established and liquid cryptocurrency asset. Furthermore, analysts like MAX Crypto highlight the rise in the M2 money supply chart, predicting that if geopolitical conditions improve, Bitcoin could test the $150,000 level, further enhancing its market dominance. All these factors contribute to the current continuation of Bitcoin’s dominance, thereby delaying the broad capital rotation needed for an altcoin season.