Sun 18. May 2025 ▪
4
min at reading ▪
The Bitcoin dominance (BTC) drops to 62.6 %, which is a slight decrease in the face of Ethereum and altcoins. Zach Pandl of Gray in Gray believes that this dominance will soon stabilize despite the uncertain macroeconomic context that continues to affect investors’ behavior.
A relative decline but a plateau expected for the dominance of bitcoins
Bitcoin (BTC) remains the most important crypt, currently representing 62.6 % of the crypto market. To 64.85 % 3. Zach Pandl believes that the dominance of bitcoins is more likely to stabilize at this level and create a magazine rather than collapse. This stability reflects the opposite forces: BTC retains its role of refuge, while altcoins benefit from increased acceptance and innovation.
In times of instability, such as inflation or geopolitical tension, bitcoin remains a digital haven, which strengthens its dominance on the market. On the contrary, a quieter environment with a prospect of reducing interest rates and the decline in commercial conflicts stimulates the appetite for risky assets such as altcoins. Zach Pandl summarizes this duality:
- In the phase of bitcoin uncertainty, capital attracts as a refuge;
- When trust returns, investors are looking for yield through altcoins;
- This rocking game regulates global dynamics of the market crypto.
The rise of altcoins carried by technological innovations
Ethereum, the main actor among altcoins, recently noted that its capitalization grew by 36 %, which exceeded the increase in bitcoins. This growth is based on the growing acceptance of decentralized applications, contracts and technical innovation in the ecosystem of the blockchain.
According to Zach Pandl, when attention focuses on these innovations, the dominance of bitcoins tends to decrease, in favor of altcoins that embody the technological potential of the sector. This phenomenon illustrates the crypto market, which is distinguished between the value of refuge and the interference innovation.
Bitcoin: Influence of institutional financial products on market dynamics
The rise of institutional financial products, such as Bitcoin ETF, has strengthened the attraction of BTC from institutional investors. These tools offer regulated and safe access to bitcoin (BTC) and direct large financial flows to this crypto. Results of effects:
- Consolidation of bitcoin dominance due to increased liquidity;
- Barrier concerning altcoins, more exposed volatility;
- A growing institutional acceptance that strengthens the perception of BTC as a safe active.
This dynamics contributes to the balance of pressure developed by altcoins to the market share of bitcoins.
Bitcoin therefore develops on a market formed by a balance between searching for security and searching for innovation. The words of Zacha Pandl perfectly illustrate this duality, which will continue to structure capital distribution in crypts. Maintaining the dominance of BTC approximately 60 % to 70 % seems likely to be likely in the short and medium term, while altcoins continue their technological development.
Maximize your Cointribne experience with our “Read to Earn” program! For each article you read, get points and approach exclusive rewards. Sign up now and start to accumulate benefits.
The world is evolving and adaptation is the best weapon that survives in this undulating universe. I am interested in everything about blockchain and its derivatives. To share my experience and promote an area that fascinates me, nothing better than writing informative and relaxed articles simultaneously.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.