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  • Anjali Belgaumkar
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    Writer by choice, CryptoCurrency Writer, and Researcher by chance. Currently, focusing on financial news and analysis, as well as cryptocurrency news and data. One may not call me a crypto “Enthusiast” but trust me I'm getting there.

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  • Reviewed by: Qadir AK
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    Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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  • 2 minutes read

Bitcoin Dominance Reset Clears Weak Projects and Primes Quality Altcoins

Story Highlights
  • Bitcoin dominance rises above 60%, signaling potential capital rotation from altcoins back to BTC.

  • ETH vs BTC performance and market cycles will shape altcoin opportunities amid rising Bitcoin dominance.

Bitcoin dominance has been the quiet story behind recent price action. After a low formed the week of September 8, dominance rose for six straight weeks. The metric broke above 60 percent and produced a sharp wick that surprised many traders. That move shows where capital may flow next.

What Bitcoin dominance means right now

Bitcoin dominance measures how much of the total crypto market value sits in Bitcoin. When dominance falls, money often moves into altcoins. When dominance rises, capital tends to return to Bitcoin. Right now dominance is testing a key zone. If it moves above the recent high, we should expect a clearer rotation toward Bitcoin.

Why this matters for altcoins

Analyst Benjamin Cowen said that many altcoins have been losing ground against Bitcoin. Some Bitcoin pairs hit new lows this cycle. That pattern matters because it changes how gains and losses show up for investors who hold alts instead of Bitcoin. When Bitcoin dominance climbs, altcoins can drop even while Bitcoin moves higher. That dynamic forces a different approach to risk and timing.

The ETH versus BTC factor

How Ethereum performs against Bitcoin will shape whether dominance can make a new high. If ETH puts in a higher low versus Bitcoin, dominance may struggle to break much higher. If ETH drops further, dominance has room to run. Watch ETH/BTC for clues on where rotation will go next.

Emotion and market narrative

A familiar cycle plays out in social channels. Analysts call for higher dominance. Creators who back microcaps push the opposite view. When dominance spikes, the critics get emotional. That pattern has repeated across cycles. The market does not care about pride. It only values clarity and evidence.

Timing matters more for altcoins

Buying low fee index funds does not require precise timing. Holding altcoins is different. Many altcoins act like penny stocks. If you buy them without timing, you can watch your position suffer for months or years. For traders in altcoins, entry and exit timing can determine outcomes more than conviction alone.

Lessons from past cycles

Past market resets have forced a cleanup. Weak leverage and poor projects exit the market. That process can clear the path for stronger networks to rally later. The same may happen now. Expect a selective cycle. Only a few durable projects will lead the next leg up.

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FAQs

What is Bitcoin dominance and why does it matter for crypto investors?

Bitcoin dominance shows Bitcoin’s share of the total crypto market. When it rises, capital often flows to Bitcoin, impacting altcoin prices. It helps predict market trends.

How does Bitcoin dominance affect altcoin prices?

When Bitcoin dominance increases, altcoins often lose value as money shifts to Bitcoin. Timing altcoin trades is key to managing risks in this dynamic.

Why is ETH/BTC important for Bitcoin dominance trends?

ETH/BTC shows Ethereum’s performance against Bitcoin. If ETH holds strong, dominance may stall; if ETH weakens, Bitcoin dominance could rise further.

How much will 1 Bitcoin cost in 2025?

As per Coinpedia’s BTC price prediction, the Bitcoin price could peak at $168k this year if the bullish sentiment sustains.

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