BTC Dominance Surges to 61%, Is Altseason Around the Corner?

Bitsfull2026/05/07 11:2611717

Summary:

Bitcoin Dominance Hits Two-Month High Amid Market Rebound, Altcoins Show Early Signs of Recovery


Editor's Note: Bitcoin remains the main theme of the current crypto market rebound. Over the past two months, BTC has surged by about 36% from its $60,000 low point, with its market share rising above 61%, hitting a new high since November last year. This indicates that although market sentiment has improved, funds are flowing back into Bitcoin first, rather than altcoins.


However, there are also early signs of recovery in the altcoin market. The share of altcoin trading volume on Binance has increased from 31% in March to 49%, and the cryptocurrency total market capitalization excluding BTC and ETH (TOTAL3) has rebounded to a two-month high. At the same time, some altcoins have reclaimed the 200-day moving average, and the overall decline has narrowed.


But this does not mean that the "alt season" has arrived. Although the AltSeason Index has risen to 28.6, there is still a long way to go before the strong altcoin cycle above 75. In other words, funds are spreading out from BTC and ETH, but the rotation is still moderate.


It is not that altcoins have fully taken off, but rather that they have just emerged from the weakest phase. The current market is still dominated by Bitcoin, while altcoins are in a recovery observation period. Whether a true altcoin rally can take shape next depends on whether BTC can maintain stability and whether altcoin trading volume and market capitalization can continue to recover.


The following is the original article:


On Wednesday, Bitcoin's market dominance rose to 61%, reaching its highest level since November 2025. This metric has been steadily increasing from 58.44% in early April, indicating that the current uptrend still leans more towards BTC rather than the broader crypto market.


Meanwhile, over the past two months, the trading volume of altcoins on Binance has also grown by 49%; in addition, 12.6% of altcoins on Binance have re-crossed above the 200-day Simple Moving Average (SMA).




Early Signs of Altcoin Recovery Emerging


Crypto analyst Darkfost has stated that since hitting a $60,000 low on February 6, Bitcoin has risen by 36%, pushing its market dominance to 61.3%.


While altcoins have been under pressure for most of this period, the TOTAL3, used to track the total market capitalization excluding Bitcoin and Ethereum, has risen by 17% to a two-month high of $765 billion. The recovery of altcoins still lags behind BTC, but several indicators have started to improve.



CryptoQuant data shows that trading activity in the altcoin market is slowly picking up. Compared to the total trading volume of BTC and ETH futures on Binance, the altcoin trading volume reached 49% on Wednesday, up from 31% in March. This change indicates that after months of fund inflows concentrating on Bitcoin and Ethereum, market participation in these two major crypto assets is increasing.


Darkfost added that the current round of fund rotation is still relatively mild, with a significant gap from the aggressive rotation phase seen in the altcoin market rally in 2024.



Exchange Volume Trends Point to Fund Rotation


Market analyst CW8900 pointed out that the resurgence of trading activity on centralized exchanges (CEX) is another signal of improved market participation outside of Bitcoin.


According to the analyst, excluding the top five cryptocurrencies by market capitalization, altcoin trading volume has been steadily increasing over the past few weeks.



The 90-day AltSeason Index has also risen to 28.6, marking the fastest recovery in several months. This index is used to measure whether the majority of altcoins outperform Bitcoin within a specific period. Typically, a reading above 75 indicates a strong altcoin season. However, CW8900 added:


“This metric also indicates that there hasn't really been an AltSeason in this cycle. The AltSeason Index hit its peak in early 2024; however, even then, the value was relatively low compared to previous AltSeasons. "


CryptoQuant data also shows that after undergoing several months of significant underperformance compared to Bitcoin, the overall altcoin market has seen some improvement. Currently, altcoins are trading 23.47% below their 200-day simple moving average, showing a significant recovery from levels below 44.4% earlier in this cycle. Similar readings have been seen in the late stages of the 2022 bear market.



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