New Delhi [India], August 20: As it stands now, Bitcoin (BTC) continues to dominate the cryptocurrency space. The total market capitalization of cryptocurrencies may total $3.3 trillion, but $2.135 trillion, or around 64.7% of this figure, is represented by Bitcoin’s market cap.
Yet this data may at first seem to suggest that Bitcoin, the original cryptocurrency, will continue to represent the lion’s share of total value in this asset class, there’s a trading trend to keep in mind.
In the past, sustained dominance of BTC has been quickly followed by a rotation of capital out of Bitcoin, and into alternative cryptocurrencies, such as major Altcoins like Ethereum, XRP, BNB and memecoins.
While the emergence of another “Altcoin season” and confidence in its return is sinking, it may not necessarily be time to lose hope just yet.
A Farewell to Altcoin Season? Not So Fast!
Although a growing number of investors have become pessimistic about the prospects of a new “Altcoin season” in 2025, there are various reasons why this trend has yet to play out. In large part, because of the rapid influx of institutional capital into Bitcoin over the past year. Thanks to recent regulatory changes, including the approval and launch of Bitcoin ETFs in the United States, Bitcoin has more-or-less become an institutional-grade asset. As a result, financial firms and other institutions like pension funds are starting to allocate a portion of their portfolio to Bitcoin-related investments.
In contrast, as Altcoins, including the most established names, lack this “seal of approval,” they are attracting far fewer institutional dollars. Nevertheless, while it does appear at this time that Bitcoin is benefiting the most from an improving regulatory environment, don’t despair. Altcoins can still be used as effective short-term trading plays.
In a recent YouTube interview with Benjamin Cowen by Binance from Into the Cryptoverse explained how many traders are still capitalizing on altcoin investments, “There have been some really great rallies, and I know people that have made money on altcoins, but they're all just short-term plays, right? They're not long-term plays… And if you're going to get into them, you have to be willing to rotate back to Bitcoin after just a few weeks or a few months. Because if you don't, what's more than likely going to happen is those meme coins will then go back down and not recover and then a new class of meme coins will then be the talk of the next altcoin rally, right? So, it's a constant rotation back to Bitcoin after just a few weeks or a few months.”
Signs That the Tide is Turning
Taking a look at technical analysis, there is further evidence that Bitcoin dominance is here to stay in the near-term. This is especially evident when looking at a recent chart for the ETH/BTC cryptocurrency trading pair.
This pair is commonly used as a proxy for altcoin confidence. Price strength in ETH/BTC signals a more favorable backdrop for Altcoins. Conversely, weakness in this crypto trading pair signals a further sustaining of Bitcoin dominance. Unfortunately, the trend continues to be the latter rather than the former.
Nevertheless, while there are numerous signs that the trend is here to stay, some signs are emerging that the tide is on the verge of turning. Recent price action notwithstanding, whales continue to accumulate direct positions in ETH. Spot ETH ETFs are also attracting a meaningful level of capital inflows.
In short, while it’s still unclear exactly when an “Altcoin season” could blossom, if additional factors emerge, including developments pertaining to specific Altcoins. Examples of this include regulatory approval of spot ETFs for other major Altcoins, as well possible regulatory changes that enable spot ETH ETFs to engage in staking activities.
Conclusion: For Now, a Matter of ‘When,’ Not ‘If’
Spring has turned into summer, but a change of seasons has yet to occur in the cryptocurrency space. Yet while Bitcoin remains dominant, representing nearly two-thirds of the entire ecosystem’s market capitalization, this dominance could prove fleeting.
As summer turns to fall, or even as fall turns to winter, subsequent macro and crypto-specific fundamentals could change, shifting the market environment back to one more favorable for an “Altcoin season” to emerge. Again, it’s important to note how much of this latest round of Bitcoin dominance has been due to how quickly Bitcoin has become an institutional grade asset. Financial institutions are still moving capital into BTC, both directly and through vehicles like spot Bitcoin ETFs. Once this massive allocation of capital wraps up, we may see the price of BTC plateau, followed by a rotation of capital out of BTC and related assets, and into ETH, BNB, and other established Altcoins.
Timing when this happens may be more of an art than a science, as “Altcoin season” remains a matter of “when,” not “if,” time may be of the essence, if you are interested in capitalizing on this possible upcoming event.
Disclaimer: This is a syndicated feed. The article is not edited by the FPJ editorial team.
