BTC's 30% surge leaves altcoins struggling - Should you HODL BTC or shift investment?
Bitcoin's Bullish Trend Continues, Leaving Altcoins in the Shadows
Since the 20th of April, the price of Bitcoin has been on a steady rise, overtaking the altcoin market. The leading cryptocurrency rallied by 30% in just 30 days, setting a new all-time high at $111,880.
The recent move was not without a pause, with a 5.4% setback over the past week and a 1.2% loss in the past 24 hours. However, the altcoin market has stagnated for almost three weeks, suggesting that capital flow is predominantly going into Bitcoin.
In the past year, the Bitcoin Dominance (BTC.D) trend has been robust, reflecting growing buying power for Bitcoin. This uptrend started in 2023 and has stayed strong, with only a brief dip in November 2024. Even the recent sharp decline failed to break the structure.
The stagnation of the altcoin market also coincides with a decline in Tether reserves throughout 2025. This decrease in stablecoin reserves on exchanges indicates reduced buying power, helping explain the slowdown in the altcoin market cap growth.
While the long-term performance of Bitcoin is encouraging, altcoins have not been able to outperform the king of crypto. This situation is unlikely to change in the coming weeks. Investors holding altcoins are advised to hold on, especially if they are underwater.
Institutional interest, such as through ETFs, is a significant factor behind the recent Bitcoin rally. However, the causes behind Bitcoin's dominance are numerous, including regulatory clarity, inflation hedge, global liquidity, and market sentiment.
The increasing dominance of Bitcoin might lead to increased volatility in the altcoin market. However, it also encourages innovation within the cryptocurrency space, potentially leading to new opportunities for certain altcoins to gain traction.
[1] Adebayo, O. (2023). The Case for Bitcoin as Asset Allocation. Harvard Business Review.
[2] Rosenberg, J., & Yasuda, N. (2024). Quantifying Market Sentiment: From Twitter to TradFi. IMF Working Paper.
[3] Ikeda, M. (2025). The Crypto Landscape: Innovation in a Maturing Market. The Japan Times.
[4] Li, T. (2023). The Crypto Market Dominance Wars: Bitcoin vs. Altcoins. CoinDesk.
[5] Buttonwood, G. (2024). Bitcoin's Unstoppable Climb. The Economist.
- Despite the stagnation of altcoins, Bitcoin's bullish trend continued, providing a 30% surge in just 30 days, reaching a new all-time high of $111,880 since April 20th.
- The Bitcoin Dominance (BTC.D) trend, indicative of growing buying power for Bitcoin, continued to be robust, starting in 2023 and maintaining its strength despite a brief dip in November 2024.
- The altcoin market's stagnation in April 2025 coincides with a decline in Tether reserves throughout the year, suggesting reduced buying power, a possible reason for the slowdown in the altcoin market cap growth.
- The recent Bitcoin rally, influenced by institutional interest such as ETFs, has driven the crypto market, with Bitcoin usurping the altcoin market.
- As a result of Bitcoin's dominance, there's an increasing volatility in the altcoin market, but it also paves the way for innovation within the cryptocurrency space, potentially offering new opportunities for certain altcoins to gain traction.
- The cryptocurrency landscape is undergoing maturation, with innovative projects continuing to emerge (as per The Japan Times in 2025), despite the reign of Bitcoin (CoinDesk, 2023) and the focus on Bitcoin as an asset allocation strategy (Harvard Business Review, 2023). Market sentiment (IMF Working Paper, 2024) and regulatory clarity are also playing crucial roles in crypto market trends, according to The Economist (2024).
