Bitcoin 'leaving  crypto in the dust' in 2025 despite altseason calls
2025-01-30
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In 2025, Bitcoin's BTCUSD cryptocurrency market share has continued to rise despite a flood of novel memecoins. 
Bitcoin dominance nears 59% despite crypto craze
Coinbase CEO Brian Armstrong recently complained about “~1m tokens a week being created now, and growing,” calling for a new approach to exchange listing in the US. 
Nevertheless, the Bitcoin Dominance Index (BTC.D), which tracks BTC’s market cap versus the rest of the crypto market, has actually risen by 15.50% in January, and up 55% in the past three years. 
Bitcoin’s rising market share defies the downside calls shared by various chartists and crypto commentators.
Strong ETF inflows put Bitcoin target at $200K
A key driver of Bitcoin's growing dominance is the increasing involvement of institutional investors. 
The approval and launch of spot Bitcoin exchange-traded funds (ETFs) have made Bitcoin more accessible to traditional investors, bolstering its market presence. 
For instance, as of Jan. 29, these funds collectively managed $39.57 billion worth of assets, up from $1.17 billion over a year ago.
Furthermore, the latest data indicates that Bitcoin whales have been amassing significant amounts of BTC, a trend closely linked to the advent and success of Bitcoin ETFs.
Private Bitcoin transactions utilizing CoinJoin—a method that enhances transaction privacy—have tripled since 2022, attributing to large-scale accumulators, including entities associated with spot Bitcoin ETFs and firms like MicroStrategy, moving substantial amounts of Bitcoin.
Analysts from institutions like Standard Chartered predict that Bitcoin could reach $200,000 by the end of 2025, given the robust inflows into Bitcoin ETFs.
Trump’s crypto plans favor Bitcoin over altcoins
The political landscape has bolstered Bitcoin's market position through the election of Donald Trump, a “pro-crypto” US president. Several US Senators, namely Cynthia Lummis, Ted Cruz, and French Hill, have also advocated for Bitcoin.
Additionally, several US states are moving forward with legislation to allocate public funds to Bitcoin. This includes Wyoming, Arizona, New Hampshire, and North Dakota, which are eyeing BTC as a potential strategic asset. 
On Jan. 23, Trump signed an executive order directing the so-called Policy Working Group to explore the possibility of creating a national Bitcoin stockpile.
This initiative aligns with Trump’s previous discussions about establishing a federal Bitcoin stockpile to strengthen the US financial position, given it does not imply adding altcoins into the reserve, despite companies such as Ripple strongly advocating for it. 
“No more altseason”
Bitcoin is increasingly decoupling from the broader crypto market, a shift that has become more apparent in recent months, as noted by Sam Wouters, an executive associated with River Financial, a Bitcoin financial services company.
Historically, Bitcoin and altcoins have moved in tandem, with altcoins often outperforming BTC during speculative "alt seasons." However, as the latest market cap trends suggest, Bitcoin is beginning to diverge, outperforming other “crypto” assets.
“The truth is, there is no more alt season,” said Wouters, adding that traders should leave behind such “false narratives” and recognize Bitcoin’s exceptionalism. 
”This cycle, bitcoin is leaving ‘crypto’ in the dust,” added market analyst Tuur Demeester.
Ethereum's losing streak vs Bitcoin not over? 
Ethereum’s native token, Ether (ETH), is now in its longest slump ever against Bitcoin. The ETH/BTC pair is down 65% since 2022, prompting some analysts to question whether more pain is coming. 
Despite US-based Spot Ethereum ETFs recording positive inflows since November, the CoinShares weekly report says that Bitcoin funds have accounted for over 90% of all inflows in the digital sector this year.
There’s also a growing sentiment that Ethereum is less attractive to retail investors due to high transaction fees and slower transaction times than competitors like Solana.
Additionally, the leadership changes within the Ethereum Foundation and internal disagreements about the project’s roadmap are likely undermining investor confidence as well. 
Meanwhile, Ether technicals suggest that if the weakness persists, ETH/BTC will likely test 0.030 BTC, a key support level that preceded a 190% rebound in 2021.
It also served as a key resistance in 2016, preceding a 75% decline and is aligned with ETH/BTC’s 0.786 Fibonacci retracement line.
Therefore, the 0.030 BTC level is crucial, so slipping below it risks testing 0.023 BTC, a support level from December 2017 and December 2020.
Conversely, a bounce from 0.030 BTC could have Ether test the local high of around 0.040 BTC in the coming months.
In US dollar terms, the $3,500 resistance level is key for the bulls in the coming weeks. 
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.