Bitcoin has surged past a new milestone, crossing the $123,000 mark and reinforcing its leadership position in the global cryptocurrency market.
The rally, which has been building steadily over the past several weeks, now places Bitcoin’s market dominance near 64%, reflecting a significant shift in capital flow back toward the original digital asset.
Analysts say this trend could mark the early stages of a familiar cycle, one that historically sees Bitcoin reclaiming ground after periods of altcoin speculation.
Bitcoin Dominance Rises as Altcoin Momentum Slows
Current data from CoinMarketCap shows that Bitcoin holds 63.9% of the total cryptocurrency market share, with a modest 0.13% daily increase.
In contrast, Ethereum, the second-largest digital asset, accounts for just 9.6%, despite a 0.23% gain over the same period. The remainder of the crypto market, made up of thousands of altcoins, currently represents 26.5% of market share and is seeing a 0.36% daily decline.
Bitcoin’s dominance briefly spiked to 65.1% on June 27, 2025, its highest level this year, signaling that traders and institutional investors are consolidating into what they view as the most stable and reliable asset in the sector.
Market strategist Benjamin Cowen noted that this environment supports “Bitcoin-heavy portfolio strategies,” as the flagship cryptocurrency continues to outperform its peers.
He also emphasized that Bitcoin is increasingly being viewed not just as a speculative asset but as a unit of account in its own right, particularly in contrast to the US dollar, which has been facing inflationary pressures and geopolitical scrutiny.
Historical Patterns Show Bitcoin’s Cyclical Strength
Bitcoin’s market dominance has followed a well-documented cyclical pattern over the past decade. During bull markets driven by speculative enthusiasm for altcoins, Bitcoin’s share of the total market tends to fall. However, when risk appetite fades or volatility rises, capital typically flows back into Bitcoin, restoring its dominance.
In December 2013, when Bitcoin operated largely unchallenged by altcoins, its dominance stood at an impressive 87.4%. That figure dropped significantly during the 2017 ICO boom, reaching as low as 33.4% in 2018, as investors turned to Ethereum-based tokens and newer crypto projects.
More recently, a similar drop in dominance occurred in early 2024 during the rise of AI-related and meme coin tokens. However, Bitcoin appears to be on a recovery path once again, mirroring past cycles seen in 2017, 2019, and 2023.
Cowen believes this current trend is consistent with historical patterns. “We’re seeing a classic dominance rotation,” he explained. “Altcoin speculation typically peaks first, then capital migrates back to Bitcoin. It’s part of the natural rhythm of the crypto market.”
He predicts Bitcoin dominance will continue to strengthen into October 2025, setting the stage for a more mature and possibly more sustainable growth phase.
Institutional and Sovereign Interest Deepens
Unlike in previous cycles, the current surge in Bitcoin’s dominance is being driven not only by retail traders but also by institutional and sovereign players. Over the past year, Bitcoin has been increasingly adopted by major financial institutions as a hedge against inflation and monetary instability.
Notably, Bitcoin ETFs, approved in several regions, including the U.S., Hong Kong, and the UK, have played a pivotal role in legitimizing the asset for mainstream investment portfolios.
As a result, Bitcoin’s recent rally is being viewed by analysts as more fundamentally grounded than previous speculative runs.
Moreover, several countries in Latin America and Africa have expanded pilot programs or legal frameworks to integrate Bitcoin into their cross-border payment and remittance systems, further solidifying its global utility.
Looking Ahead: A Prolonged Period of Bitcoin Leadership?
As Bitcoin continues to assert its market dominance, questions remain about whether altcoins can regain momentum or if this signals a prolonged shift toward a more Bitcoin-centric market environment.
With dominance projected to rise through late 2025 and continued support from institutions, it appears that Bitcoin is entering a new phase, less volatile, more accepted, and increasingly central to global digital finance.
For now, traders are watching closely to see if Bitcoin can build on this momentum and push beyond its next resistance levels, or whether another altcoin cycle will eventually emerge.
