Altcoins under pressure: Bitcoin dominance reaches highest point in 4 years
dominance in the has reached a new high. On April 16, 2025, this indicator jumped to 54.7%, its highest level since February 2021, noted analyst Crypto Kavi. This increase indicates a clear shift: investors are increasingly choosing Bitcoin over altcoins, especially now that markets remain volatile against the backdrop of a tariff war.
Historical cycle is over
The current development is remarkable, to say the least. We usually see the crypto market reach a new high about 500 to 600 days after a halving. But this time, the pattern appears to be breaking. Instead of an upward explosion, we are in the midst of a sharp correction, which is also lasting longer than many analysts expected.
It is striking that Bitcoin is holding up relatively well, while altcoins, in particular, are suffering significant losses. Consider , for example: In January, the coin reached an all-time high (ATH) of around $293. Just three months later, the price fell to a low of just under $100, a decline of approximately 69%.
Bitcoin Maturity
The fact that the historical cycle is somewhat different this time is due to several developments. First, Bitcoin is increasingly being recognized as a digital form of store of value. Consider, for example, the establishment of a strategic American reserve, a huge bullish signal, although this news is currently somewhat overshadowed by the noise surrounding trading tariffs.
In addition, we see that institutional players and companies like MicroStrategy and Metaplanet continue to on a massive scale. This creates more confidence in BTC as a long-term investment.
The situation is different for altcoins. Many projects have yet to fulfill their promises and are therefore hit particularly hard in times of uncertainty. In a macroeconomically turbulent environment, investors prefer to seek safety, and they are currently more likely to find it in established assets such as Bitcoin and gold than in risky altcoins.
