Bitcoin (BTC) Dominance Hits New Cycle High. Will Price Follow?

Bitcoin is tightening its grip on the crypto market, with its dominance ratio climbing to 64.82% today, marking its highest level in several months. This ratio measures Bitcoin’s share of the overall crypto market value and indicates a growing concentration of capital in BTC.

I am once again here to announce that #Bitcoin Dominance has hit a new cycle high pic.twitter.com/kdy39VFLDp

— Benjamin Cowen (@intocryptoverse) May 2, 2025

At the time of writing, Bitcoin is priced at $97,000, having broken through the $90,000 barrier earlier this week. Although it remains around 11% below its record high, it continues to outperform traditional financial benchmarks. By comparison, the S&P 500 is still 15% below its all-time high, and the Nasdaq Composite is trailing by more than 20%.

Analysts often view rising BTC dominance as a precursor to further price appreciation, especially when altcoins lag. If the current trend continues, Bitcoin could attract even more capital as market participants seek stability amid broader uncertainty.

Will Price Rally Follow?

While there’s no guarantee of a new all-time high, Bitcoin’s growing dominance may provide a solid foundation for price momentum. This strong performance is attracting institutional interest, particularly in light of a tight global liquidity environment, as seen in recent ETF inflows.

Data from Sosovalue shows that spot Bitcoin ETFs attracted $422.45 million in inflows on May 1 alone. That brings the total for the week to $1.13 billion, signaling strong buying even if it’s lower than the previous week’s $3.06 billion.

Alongside rising flows, volatility has dropped sharply. K33 Research reported that Bitcoin’s 7-day price volatility has fallen to its lowest level in 563 days. Historically, calm periods like this have preceded major moves, with market analyst BitBull suggesting the market could be “coiled” for a breakout.

Stage for an Altcoin Rebound?

Bitcoin’s rising dominance is sidelining altcoins, many of which remain trapped in downtrends or stagnant accumulation phases. The broader altcoin space faces pressure from weak institutional interest, subdued on-chain activity, and a lack of clear value propositions.

The growing divergence in market trends has sparked debate among crypto voices. Some view Bitcoin’s dominance, now approaching 65 percent, as a warning signal. One notable figure on X argued that those who fail to act or deploy their capital during this period may regret it in the long term.

Others interpret the trend differently, suggesting it could set the stage for an altcoin rebound. Commentator Juice pointed out that, despite Bitcoin dominance posting five consecutive monthly gains, this could mark the start of an altcoin season.

“The last time this happened it led to a 2 year decline from 73% to 38%. Altseason starts this month,” Juice tweeted.

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