Bitcoin Dominates Market Funds Like a Black Hole... Altcoins Face Annihilation Crisis

▲ Bitcoin (BTC)

Bitcoin (BTC) market share has surpassed 61%, reaching its highest level since November 2025. As cryptocurrency market funds once again gravitate towards Bitcoin, altcoin trading activity also shows some signs of recovery, drawing attention to the market's next rotation phase.

Cointelegraph reported on May 6 that Bitcoin's market share rose to 61% on Wednesday. Bitcoin's share, which was 58.44% in early April, showed a significant increase in just over a month. During the same period, the trading volume of altcoins listed on Binance also increased, and 12.6% of Binance altcoins recovered their 200-day simple moving average.

Crypto analyst Darkfost explained that Bitcoin rose 36% since its low of $60,000 on February 6, pushing its market share up to 61.3%. While altcoins faced considerable pressure during the same period, TOTAL3, which tracks the total market capitalization of cryptocurrencies excluding Bitcoin and Ethereum (ETH), rose by 17% to reach a two-month high of $765 billion. Although the recovery speed of altcoins lagged behind Bitcoin, some indicators showed an improving trend.

According to CryptoQuant data, trading activity in the altcoin market gradually increased. The proportion of Binance altcoin trading volume, based on the combined Bitcoin and Ethereum futures trading volume, rose from 31% in March to 49% on Wednesday. Darkfost assessed that this change is still moderate and far from the aggressive fund rotation phase seen during the altcoin rally in 2024.

Market analyst CW8900 also pointed to increased trading activity on centralized exchanges as a sign of improved participation in assets other than Bitcoin. According to CW8900, the trading volume of altcoins, excluding the top 5 cryptocurrencies by market capitalization, has steadily increased in recent weeks. The 90-day Altseason Index also rose to 28.6, showing the fastest recovery in several months. This index tracks whether a majority of altcoins outperform Bitcoin over a certain period, and a reading above 75 is associated with a strong altcoin cycle.

CW8900 stated, “This indicator also shows that there has not been a true altseason in this cycle. The highest level the Altseason Index reached was in early 2024, and even that figure was relatively low compared to previous altseasons.” CryptoQuant data also indicated an overall improvement in the altcoin market, which had underperformed Bitcoin for a long time. The average altcoin price is currently trading 23.47% below its 200-day simple moving average, recovering from a level 44.4% lower at the beginning of the cycle. A similar trend was observed in the latter half of the bear market in late 2022.

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