Expert Insights on Non-BTC crypto Season Catalyst: When Will Bitcoin Dominance Finally Decrease?

BTC continues to maintain a strong hodl on the trading market. Its market dominance, reflected as a portion of the total crypto asset market cap, is currently around 63.9% after reaching a peak of 65.3% in May.

Traditionally, such robust performance from BTC signals a broader transition where traders shift profits into smaller-cap assets. However, this time, such a transition has not occurred on a significant level. Many are asking: When will non-BTC crypto season commence?

There were high hopes that 2025 would mark the resurgence of altcoins, but that enthusiasm is beginning to fade as we reach the middle of the year.

EXPLORE: OnlyFans Rich List 2025: Sophie Rain Takes the Lead as Inequality Among Creators Becomes Visible

Nonetheless, Experts Concur: Altcoin Season Is Not Finished, Merely Postponed

Several factors account for this atypical situation. A major contributor is the influx of institutional investors who now perceive Bitcoin as a safe regulatory entry point into the cryptocurrency space. The emergence and swift acceptance of spot Bitcoin ETFs have channeled substantial capital directly into Bitcoin.

In previous cycles, altcoins occasionally acted as speculative alternatives to Bitcoin. Nowadays, institutions can directly invest in Bitcoin. This is precisely what they are doing, contributing to a cooling effect on the rest of the market.

Bitcoin stands as the preferred trade among institutions. The view of Bitcoin as a more secure choice, bolstered by regulatory clarity and operational dependability, hinders the flow of capital into altcoins. Conversely, numerous altcoins still face challenges related to smart contract vulnerabilities, unclear regulations, and elevated levels of centralization. This uncertainty deters institutional investors from venturing outside of Bitcoin, at least for the time being.

BTC Dominance Chart Indicates: Continuing in a BTC-Led Era

(Bitcoin.D)

An examination of the BTC dominance chart supports this viewpoint. Approximately 64.8% of Bitcoin’s crypto market dominance has been progressively increasing since late 2022. Unlike the 2020–2021 bull crypto market, when Bitcoin dominance achieved a high of about 73% before swiftly declining and igniting a robust alternative coin season, there has been no sign of such a reversal as of yet.

The weekly chart illustrates persistent higher highs and higher lows, with capital continually flowing into Bitcoin while most altcoins lag behind. This dominance is even more apparent in the ETH/BTC chart.

(BTCETH)

Ethereum has had difficulty outperforming BTC. While it has been relatively stable against the U.S. dollar, it has lost ground to Bitcoin for nearly two years. In straightforward terms, holding Bitcoin over Ethereum during this timeframe has yielded a better return on investment.

Why this matters: The ETH/BTC ratio is often regarded as an indicator of alternative coin confidence. When Ethereum performs well against Bitcoin, it generally indicates a growing risk appetite and a healthier market for altcoins. Conversely, a declining ETH/BTC ratio suggests defensive positioning and a consolidation of capital into Bitcoin.

Jess Houlgrave, CEO of Reown, mentions that altcoins lag because many are still driven by hype rather than fundamentals. Meanwhile, BTC has established its reputation with institutional confidence, consistent utility, and macro relevance.

Some crypto commentators believe that the largest alternative coin season in history could still emerge in June, reflecting patterns from earlier cycles. However, macroeconomic conditions cannot be disregarded. Geopolitical tensions, uncertainty around interest rates, and a cautious risk climate have made investors wary of embracing market fluctuation. Additionally, market fluidity is spread thin across an expanding array of new non-BTC crypto ventures, diluting crypto market focus.

The outcome is a disjointed landscape where only a few altcoins can maintain substantial momentum.

ETH Shows Quiet Resilience While BTC Dominance Persists

On a positive note, ETH is witnessing strong accumulation by whales and consistent inflows into spot ETFs: over 870,000 ETH was purchased in a single day recently, marking the highest daily total since 2017. ETFs have now experienced 19 consecutive days of net inflows, exceeding $500 million.

(Source)

Nonetheless, ETH’s price has seen a slight decline due to a significant increase in short positions on CME futures, with net shorts reaching $1.55 billion. This reflects a gaining momentum delta-neutral approach: investors go long through ETFs or spot while simultaneously shorting futures to hedge and earn yield without direct exposure to price fluctuations.

If staking is approved for U.S.-based Ethereum ETFs, this strategy could broaden significantly, potentially offering yields nearing 8%. Currently, Ethereum’s robust fundamentals are being overshadowed by intricate hedging strategies.

For crypto asset enthusiasts pondering when BTC dominance will eventually decrease, the likely answer is: not just yet, but soon. Alternative coin season may be delaying, but it is far from being called off. As Bitcoin’s rise levels off and new capital seeks higher returns, the alternative coin trading market might experience a revival, potentially by the late months of 2025 or early 2026.

DISCOVER: Top Solana Meme Coins to Invest in 2025

The post Expert Predictions For Altcoin Season Trigger: When Will Bitcoin Dominance Finally Fall? appeared first on 99Bitcoins.