Bitcoin's market dominance has reached its highest level in four years, surpassing 62% despite a substantial price correction. This shift marks a significant reversal in cryptocurrency market dynamics that experts describe as an "altcoin annihilation."
The world's largest cryptocurrency has steadily increased its market share since December, when it briefly fell to 55% and sparked unfulfilled expectations of an "altseason." According to Tradingview data, while there was a brief spike above current levels on February 3, the recent increase represents a more sustained trend rather than an isolated price movement.
"Bitcoin dominance has surged to a new cycle high, surpassing its previous peak – clear evidence that the altcoin rally was short-lived," Matrixport reported on March 12. The financial services company noted that experienced traders have strategically moved assets from alternative cryptocurrencies into Bitcoin.
The shift comes despite Bitcoin experiencing its own 29% price correction. Matrixport analysts suggest the next phase of Bitcoin's rally "may require more patience," particularly as the Federal Reserve maintains its hawkish monetary stance.
Market observers have historically identified 70% dominance as the peak of Bitcoin's cycle. A decline from this level typically signals the beginning of altcoin season, but current market conditions suggest this remains distant. Most alternative cryptocurrencies have fallen more than 50% from their recent peaks.
Ethereum, the second-largest cryptocurrency by market capitalization, has experienced particularly severe declines. Its market share has plummeted to 8.5%, its lowest point in nearly five years according to Tradingview data. Prices have retreated to bear market lows, dropping below $1,800 on March 11 and struggling to reclaim the psychologically important $2,000 threshold.
The ETH/BTC ratio has fallen to 0.022 this week, representing its weakest position against Bitcoin since May 2020. One market analyst noted that 78% of all ETH/BTC trading days are now "in the red."
Solana has suffered an even more dramatic collapse over the past two months following the burst of the memecoin bubble. With approximately 80% of its revenue and utility derived from memecoin minting and trading, SOL prices have plunged 60% since their all-time high in mid-January. Network revenue has declined by a staggering 90%.
Other major cryptocurrencies have entered bear market territory, defined as a decline of more than 70% from their peak values. These include Cardano, Dogecoin, Chainlink, Stellar Lumens, Avalanche, Shiba Inu, Bitcoin Cash, Litecoin, and Polkadot. Cardano briefly exceeded $1 during recent trading but remains 76% below its 2021 peak, while Dogecoin has experienced similar volatility and currently trades at the same percentage below its nearly four-year-old high.