Lower Bitcoin Dominance Reinforces Altcoin Strength — Here’s How

Bitcoin has been the undisputed leader of the crypto market, but the balance of power is starting to shift. Recent market moves indicate that Bitcoin’s dominance is slipping as altcoins surge into the spotlight, driven by institutional interest and network upgrades. While Bitcoin remains the anchor of the digital asset space, altcoins are carving out their own narratives, and investors are beginning to take notice.

Bitcoin Consolidates While Altcoin Captures Momentum

In an X post, full-time crypto trader and investor, Daan Crypto Trades, has been observing a significant trend in the crypto space. Bitcoin’s dominance (BTC.D) is still trending lower, which shows that altcoins are currently outperforming the market leader.

Daan points to the possibility of a crazy end-of-cycle run for altcoins, which could see BTC dominance drop to the 48-49% level. He notes that this is a level where he would personally consider scaling out of his altcoin positions more aggressively. 

While Daan sees the potential for a short-term drop in Bitcoin’s dominance, he remains bullish on BTC and ETH for the long term. The expert emphasizes that these two assets will always be his main long-term holdings, and doesn’t expect them to lose a significant amount of market share over the next decade. However, their market share will likely increase over time, but that doesn’t mean traders get to play some nice volatility in between.

Analyst Fabdarice has highlighted a compelling trend from 2025 on-chain data. Ethereum whale holdings are rising, while Bitcoin whale balances continue to trend down. This divergence mirrors the surge in institutional demand for ETH and the growing recognition that Ethereum is emerging as a credible store of value, not just a utility asset.

For the first time, ETH and BTC are being treated as equals on the institutional playing field. Bitcoin remains the original reserve asset of crypto, but Ethereum’s dual role as both infrastructure and wealth preservation is reshaping investor behavior.

The ETH/BTC Ratio As A Market Sentiment Indicator

Popular crypto commentator CryptosRus has also provided a key insight into the current state of the market by highlighting the significant disparity between Ethereum’s and Bitcoin’s performance relative to each other. CryptosRus pointed out that the ETH and BTC ratio hit its all-time high of 0.148 on June 12, 2017, fueled by the ICO-mania bull run.

However, the expert observes that in 2025, the ETH/BTC ratio averaged a mere 0.027, showing how much ground Ethereum has lost against Bitcoin over the years. Despite ETH’s role as the backbone of DeFi and its growing institutional presence, it has yet to repeat that level of relative dominance.