Bitcoin’s Epic Surge: Is the Altcoin Party Over for Good?
Bitcoin’s dominance soars to a 4-year high of 64.89% as altcoins falter, per Binance report. Is BTC the only crypto winner now?
Bitcoin Reigns Supreme: Altcoins Struggle to Keep Up
On May 5, 2025, Bitcoin’s market dominance hit 64.89%, its highest since January 2021, as its price climbed to $97,000, according to a Binance report cited by crypto.news. This surge, up from 57.9% at the year’s start, reflects Bitcoin’s growing grip on the $3 trillion crypto market, while altcoins like Ethereum and Solana lose ground, per TradingView data.
What’s Driving This?
Bitcoin’s rally is fueled by institutional demand, with $4 billion more flowing into Bitcoin ETFs than gold ETFs this week, per Decrypt. Trump’s pro-crypto policies, including a Bitcoin reserve, have boosted confidence, though his tariff threats dampened altcoin enthusiasm, per crypto.news. Altcoins, which soared post-Trump’s election, now face a 15% market cap drop since March, as investors favor Bitcoin’s stability. Posts on X, like
Bitcoin’s rally is fueled by institutional demand, with $4 billion more flowing into Bitcoin ETFs than gold ETFs this week, per Decrypt. Trump’s pro-crypto policies, including a Bitcoin reserve, have boosted confidence, though his tariff threats dampened altcoin enthusiasm, per crypto.news. Altcoins, which soared post-Trump’s election, now face a 15% market cap drop since March, as investors favor Bitcoin’s stability. Posts on X, like
@AltCryptoGems
, note only 20 altcoins outperformed BTC in 2024, signaling its liquidity grab.
Why It Matters
For new investors, Bitcoin’s dominance means it’s soaking up most market attention, making altcoins riskier bets. BTC’s perceived safety, backed by firms like BlackRock holding $5.4 billion in BTC-related assets, appeals during economic uncertainty, per CBS News. Yet, altcoins could rebound if macro conditions improve, as Binance suggests. Over-investing in BTC risks missing altcoin breakouts, but chasing small-cap tokens now could lead to losses if dominance climbs to 70%, per Morrison’s analysis.
For new investors, Bitcoin’s dominance means it’s soaking up most market attention, making altcoins riskier bets. BTC’s perceived safety, backed by firms like BlackRock holding $5.4 billion in BTC-related assets, appeals during economic uncertainty, per CBS News. Yet, altcoins could rebound if macro conditions improve, as Binance suggests. Over-investing in BTC risks missing altcoin breakouts, but chasing small-cap tokens now could lead to losses if dominance climbs to 70%, per Morrison’s analysis.
What’s Next?
Bitcoin faces resistance at $98,000, with a potential breakout to $100,000 if tariffs ease, per Reuters. Altcoins need fresh catalysts, like Solana’s recent upgrade, to regain traction. Diversify with stablecoins or ETFs and research projects thoroughly.
Bitcoin faces resistance at $98,000, with a potential breakout to $100,000 if tariffs ease, per Reuters. Altcoins need fresh catalysts, like Solana’s recent upgrade, to regain traction. Diversify with stablecoins or ETFs and research projects thoroughly.
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The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
