Altcoin Season Ends, Bitcoin Takes Over!

The crypto landscape is experiencing a silent earthquake. As altcoins were trying to rise to prominence, a giant regained control: Bitcoin. By the end of 2024, the “altcoin season” had extinguished, giving way to an overwhelming dominance of BTC. According to Rekt Capital, a respected analyst, Bitcoin could reach 71% market share before any altcoin revival. A scenario that resonates as a warning for overly optimistic investors. But how did we get here? And what does this dynamic reveal about market evolution?

Bitcoin: The return of the king?

The numbers speak for themselves. In early December, Bitcoin’s dominance hit a floor of 55%, a level that served as a springboard for a meteoric rise.

In just a few weeks, BTC climbed to 64.3% market share. For Rekt Capital, this trajectory is not surprising. It fits into a recurring pattern: Bitcoin always regains power before temporarily yielding to altcoins.

But this time, the mechanics seem more brutal. Institutional ETFs, political speculations (like the strategic reserves mentioned by Trump), and the halving have injected an unprecedented dose of adrenaline into BTC’s veins.

History teaches us that Bitcoin must cross 71% dominance to reignite the “altcoin season.” A paradox? Not really. This level symbolizes a peak of extreme confidence in BTC, often followed by a retreat of capital into riskier assets.

But today, the path to this threshold is fraught with obstacles. Altcoins, weakened by massive liquidations and risk aversion, struggle to hold on. Ethereum, despite being the leader of altcoins, stagnates in a downward trend against Bitcoin for years. A weak signal for the entire sector.

The “Gravestone Doji” effect: A troubling omen

Some traders, like Titan of Crypto, are scrutinizing the charts with caution. The recent “Gravestone Doji” observed on BTC.D — a rare technical figure — suggests a potential reversal.

This formation, often associated with bullish exhaustion, could herald an awakening of the altcoins.

Yet, Rekt Capital remains firm: as long as Bitcoin hasn’t hit 71%, any attempt for altcoin rebounds will be fleeting. Hopes for a “crypto spring” therefore hinge on a final escalation of BTC.

Altcoins are paying the price of a hostile environment. Bitcoin ETFs, perceived as havens of stability, are cannibalizing the attention — and capital — of investors.

In a context of geopolitical tensions and high interest rates, Bitcoin embodies a safe haven, while altcoins are relegated to the status of speculative bets.

All hope for an altcoin revival rests on Ethereum. But the ETH/BTC, a key pair, paints a grim picture.

In a downward trend for years, Ethereum struggles to turn the tide. For many, a decisive break of this ratio is essential to rally the rest of the market. In the meantime, investors are taking refuge in Bitcoin, widening the gap even further.

Bitcoin’s dominance is not a fatality but a phase. Previous cycles show that after every peak, altcoins experience a resurgence. But timing is crucial. Patience is therefore imperative. In the meantime, seasoned traders are monitoring two indicators: the RSI of BTC.D, and others are lost amidst the chaos of the market.