- Bitcoin’s market dominance has increased from 38% to 58% since the FTX collapse, driven by stronger capital inflows compared to altcoins.
- Bitcoin’s market cap has grown to $1.9 trillion, with lower volatility and increasing adoption as a store of value.
- Altcoins struggle to recover, with market cap declining by 31.5% in early 2025, though analysts anticipate a future alt season.
Blockchain analytics firm Glassnode has reported a significant increase in Bitcoin’s market dominance since the collapse of FTX. According to the firm’s latest data, Bitcoin’s dominance has surged from 38% to 58% since late 2022. This rise in dominance highlights the increasing capital rotation into Bitcoin over other digital assets, including altcoins.
Glassnode’s data further revealed that Bitcoin’s market capitalization has grown 5.3 times since its 2022 low, rising from $363 billion to approximately $1.9 trillion. In comparison, altcoins have experienced a market cap increase of 4.7 times, reaching $892 billion.
Bitcoin dominance has surged from 38% to 59% since the FTX collapse, reflecting a net capital rotation into BTC over other digital assets: https://t.co/I1rZLhGP9n pic.twitter.com/00WQ6Tboa8
— glassnode (@glassnode) February 7, 2025
Despite the notable rise in both segments, Bitcoin has outpaced altcoins in capital inflow, reinforcing its position as the leading digital asset.
Bitcoin’s Market Stability and Institutional Adoption
The analytics firm identified Bitcoin as a global asset because investors now use it during major macroeconomic situations. The December 2024 market cycle presented more stability through reduced volatility and minimal loss during market dips. The retail investing community depicts a new trend by acquiring Bitcoin at times of market depreciation instead of executing hasty sales.
Glassnode’s research demonstrated Bitcoin develops into a valuable store of wealth while simultaneously serving as an exchange method. During the last year, Bitcoin received more than $850 billion in capital at the same time when its daily economic trade reached $9 billion. The observed numbers confirm enduring market adoption and organizational interest in the asset.
Bitcoin seems to maintain stability in its market dominance during economic developments such as former U.S. President Donald Trump’s positive stance on cryptocurrencies. The debate about using Bitcoin as a reserve asset by the United States government created additional interest in this digital currency.
Altcoins Struggle as Bitcoin Dominance Continues to Rise
The expansion of Bitcoin exceeds all revival possibilities for alternative cryptocurrencies. The research conducted by Glassnode showed that altcoins remained stagnant since Donald Trump established his new tariff policies against China, Canada, and Mexico. The combined impact of these tariffs generated market sell-offs that caused the altcoin market capitalization to decrease.
The total altcoin market cap reported by CoinMarketCap on February 3 reached $1 trillion but experienced a 31.5% decrease since January ended according to data. Bitcoin continues gaining dominance in the crypto market and analysts have tracked the decrease of altcoin support values since the previous months.
Some analysts in the market predict that we may see an upcoming break in altcoin underperformance. Experts predict that when Bitcoin’s dominance ends it will start a capital move which will benefit altcoins thereby initiating an altcoin season. Rekt Capital indicated that Bitcoin must surpass 71% dominance for altcoins to gain momentum according to his analysis.
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