The ongoing Israel-Iran conflict has weighed heavily on stock and cryptocurrency markets, but not on Bitcoin Dominance (BTC.D). Since yesterday, the total market capitalization has dropped by around 6%.
While Bitcoin (BTC) and altcoins have seen their values decline, BTC.D has bucked the trend, rising by 1.4%. This development casts a shadow over the hopes of a potential altcoin season, pushing the timeline for altcoin rallies further into uncertainty.
Bitcoin Dominance Rises Despite Geopolitical Tensions
BeInCrypto reported earlier today that Israel’s strikes on Iran triggered a massive downturn in the market, with liquidations exceeding $1 billion. The total crypto market capitalization has declined from $3.4 trillion to $3.2 trillion.
The market-wide sell-off saw Bitcoin decline by approximately 3.1%. Nonetheless, altcoins experienced steeper losses, contributing to the increase in BTC.D. Bitcoin Dominance rose from 63.8% to 64.7% at the time of writing.
This metric, which measures Bitcoin’s market capitalization as a percentage of the total crypto market cap, suggested that investors are exiting altcoins faster than Bitcoin. Thus, this reinforces BTC’s relative strength amid market turmoil.
However, the rise has significant implications for the awaited but yet-to-come altcoin season. Many analysts had anticipated a potential decline in BTC.D as a precursor to the onset of an altcoin season.
Yet, market dynamics appear to be moving in the opposite direction. A crypto analyst highlighted on X (formerly Twitter) that Bitcoin Dominance has reversed its trend and is moving upward.
“Key resistance between 64.31% and 64.63%. A sustained break above this zone would suggest that wave-(2) is still unfolding upward,” the post read.
He forecasted that if this materializes, it could potentially delay the start of altcoin season. Meanwhile, Benjamin Cowen, CEO and Founder of Into The Cryptoverse, highlighted that the ALT/BTC ratio has dipped from 0.34 in early May to 0.32.
Moreover, he foresees altcoins losing more ground with the ratio sliding to 0.25 in the long term.
“I used to be bullish on Bitcoin dominance. I still am, but I used to be too,” Cowen posted.
In a separate interview with Binance, Cowen drew attention to Bitcoin’s resilience over other digital assets. He stressed that BTC is a “safe haven,” particularly amid macroeconomic uncertainties like inflation and unemployment.
“Bitcoin will survive whatever happens, whatever is coming our way. Bitcoin will likely survive and continue, you know, eventually going back up like it always does, but you can’t always say the same about every single altcoin,” he remarked.
The analyst also noted that most altcoins experience short-lived periods of success, with only a handful maintaining a position in the top five or ten for more than one cycle.
He cautioned that investors who have been consistently dollar-cost averaging (DCA) into altcoins may find themselves at a loss, as these assets often fall relative to Bitcoin.
That’s why an altcoin season may be necessary for those investors to break even. Despite this, Cowen added that even if there’s an altseason, it may not come until November 2025.
The post Bitcoin Dominance Gains as Total Market Cap Shrinks: What Does This Mean for Altcoin Season? appeared first on BeInCrypto.
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