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Bitcoin dominance rises to 59.3% by 2025 amid ETF approvals, institutions’ push
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Altcoin-fueled market declines have pushed BTC back to its historical lows, reclaiming the market share
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Bitcoin rally may be challenged by seasonal drops in August-September
According to new data, CoinGecko, Bitcoin’s hold on the cryptocurrency market is tightening. Its average market dominance reached 59.3% by 2025, marking its third consecutive year of gains.
The trend indicates a more stable phase for the largest digital asset in the world, largely driven through increased institutional participation via products like spot Bitcoin exchange-traded funds (ETFs).
Bitcoin’s historical dominance: A decade of shifts
Bitcoin’s share of the market has changed dramatically over the past decade. Between 2013 and 2016 its dominance was almost absolute, with an average of 83% to 93%.
This changed during the 2017-2018 ICO Boom, which introduced a new wave of altcoins and diverted investor attention away from Bitcoin. In January 2018, its dominance dropped to a new record low of 31,1%. In the years that followed, dominance rose to between 60% and 70%.
Bitcoin began to regain its position in the years that followed, despite the drop. From 2019 to 2020, the dominance hovered around 60% to 70%, supported by the 3rd halving, DeFi’s rise, and the growing interest of major institutions.
Bitcoin’s Market Share Rebounds After a Decline
In 2021 and 2022, Bitcoin’s dominance was once again challenged. Altcoins performed better than Bitcoin, despite the fact that prices reached new heights. Bitcoin’s share of the market dropped to 38.6%. Things changed dramatically in 2023. Bitcoin slowly began to regain ground, fueled by regulatory progress and financial instruments like ETFs.
Related2025: Ethereum Surges 170% As Bitcoin Dominance Declines — Is a Blow Off Top Near?
By 2025, Bitcoin will have increased its dominance by more than 20 percentage point since 2023. CoinGecko data shows that daily fluctuations are now milder. The changes range between 1.2% and 1,6%. This is in stark contrast to previous years, when daily swings up to 16 percentage point were common.
What lies ahead?
Risks remain despite the bullish trend. Lookonchain’s historical data shows that August and September are historically bearish months for Bitcoin.
In 8 of the 12 years since 2000, prices have fallen during these months. This means that there is a 67% probability of seasonal decline.
RelatedBitcoin’s MVRV Ratio Hints At ‘Balanced Price’, But Is A BTC Rally Coming?
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