Bitcoin Dominance (BTC.D) Reaches 64.98%, Marking a New High for 2025 and the Highest Level Since 2021

Bitcoin (BTC) dominance reached 64.98% in the first week of May, setting a new high for 2025 and the highest level since 2021.

Bitcoin dominance is calculated by dividing the market cap of BTC by the total market cap of cryptocurrencies.

This metric is closely followed by experienced traders who are expecting it to eventually trigger a recovery in altcoins. However, some analysts remain skeptical.

Chart Of The Week: Is A Bitcoin Dominance High Really Signaling An'

Experienced traders have long used BTC dominance to predict altcoin season. The 65% level also represents a significant historical resistance, a threshold many traders have been watching closely.

Analyst Darky believes that 65% could be the top for BTC dominance and expects a sharp drop from this point. If that happens, it would suggest that altcoins are about to rally. An altcoin season typically begins when capital rotates from Bitcoin into altcoins, eventually driving BTC dominance down to the support zone around 39%.

“The BTC dominance is about to drop so hard. Fill your bags with altcoins,” Darky predicted.

Beyond the technical signal that 65% is a strong resistance, some traders also point to a rising wedge pattern forming in BTC dominance. This classical chart pattern usually signals a bearish reversal, supporting the scenario of a strong pullback in Bitcoin dominance.

However, other traders are skeptical of this scenario and believe that BTC dominance may need to rise above 70% before an actual rotation into altcoins begins.

For example, Milk Road pointed out that only 17% of altcoins have outperformed BTC over the last 90 days. This statistic suggests that capital has not yet begun rotating out of Bitcoin into altcoins.

“If anything, BTC is still holding the wheel. This is despite the fact that the total market cap dropped from $3 trillion to $2.87 trillion in the first week of May, while BTC dominance went from 64.4% to 65%.

“This means that more capital is exiting the market from altcoins than from Bitcoin, which does not yet support the case for a true altcoin season. It remains to be seen whether BTC dominance will continue to rise from here or whether it will drop sharply from the 65% level, signaling the start of a strong altcoin season.”

This analysis provides a glimpse into how experienced traders are viewing the market and what they are expecting in the coming weeks. It will be interesting to see how these predictions play out and what impact they have on the cryptocurrency markets.

It is important to note that these predictions are based on the traders' own observations and interpretations of the market. They may not necessarily reflect the views of everyone in the cryptocurrency community.

Experienced traders are closely following the movements of Bitcoin dominance as they anticipate a potential shift in capital towards altcoins. However, despite the rise in Bitcoin dominance to nearly 65%, some traders are skeptical that an altcoin season is imminent. They believe that BTC dominance may need to rise above 70% before an actual rotation into altcoins begins.

Among the traders who are expecting a recovery in altcoins, An An, an analyst at AnChain.AI, believes that the 65% level will be the top for BTC dominance and that it will drop sharply from this point.

An An explained that AnChain.AI's analysis integrates on-chain, macro, and socio-economic factors to provide a comprehensive view of the market. Their analysis indicates that BTC dominance is likely to decrease as capital rotates out of Bitcoin and into altcoins.

"The BTC dominance is about to drop so hard. Fill your bags with altcoins," An An predicted.

In addition to the technical signal that 65% is a strong resistance, some traders also point to a rising wedge pattern forming in BTC dominance. This classical chart pattern usually signals a bearish reversal, which supports the scenario of a strong pullback in Bitcoin dominance.

However, other traders, such as Milk Road, are skeptical of this scenario and believe that BTC dominance may need to rise above 70% before an actual rotation into altcoins begins.

Milk Road highlighted that only 17% of altcoins have outperformed BTC over the last 90 days, which suggests that capital has not yet begun rotating out of Bitcoin into altcoins.

"If anything, BTC is still holding the wheel. This is despite the fact that the total market cap dropped from $3 trillion to $2.87 trillion in the first week of May, while BTC dominance went from 64.4% to 65%," said Milk Road.

This statistic implies that more capital is exiting the market from altcoins than from Bitcoin, which does not yet support the case for a true altcoin season. It remains to be seen whether BTC dominance will continue to rise from here or whether it will drop sharply