The continuous increase in the Bitcoin dominance index (BTC.D) is raising many speculations about the possibility of a new altcoin season emerging. While some analysts expect that the adjustment of BTC.D could pave the way for altcoins to break out, some market experts are warning that the current cycle may differ significantly from previous stages.
According to them, current Bitcoin hodlers are not inclined to shift capital to altcoins as in previous cycles, making expectations for an "Altseason" more tenuous.
BTC.D reaches a 4-year high
The BTC.D index has reached its highest level in over four years, reaching 64.63%, up 11% since the beginning of 2025. This development has led many analysts to predict that a correction may be imminent.
BTC.D 4-hour chart | Source: TradingViewExpert Mister Crypto believes that BTC.D is approaching an important resistance zone – a level that Bitcoin has often struggled to surpass in the past.
"BTC.D is about to be rejected here. When that happens, altcoins will surge strongly!", he shared.
Some other analysts have also expressed optimism, including Merlijn The Trader who wrote:
"BTC.D is collapsing. The altcoin season is approaching – just a little more patience."
Source: Merlijn The Trader/ XHowever, not everyone agrees with this perspective.
Altcoin needs new capital flow to increase in value
Scott Melker, the host of The Wolf Of All Streets Podcast, believes that the current cycle is unfolding very differently from previous stages. In a post on X, he argues that in the past, capital often flowed back and forth between Bitcoin and altcoin, but now, capital is flooding into Bitcoin from individual investors, institutions – even governments – without spreading to altcoin.
"Money cannot flow from ETFs to meme tokens," Melker commented.
He believes that many altcoin investors are selling off not because they want to switch their capital to BTC, but due to financial pressure, marking a "surrender" rather than a capital relocation strategy. This reflects a worrying reality: altcoins will struggle to recover without new inflows from outside, instead of relying on the capital cycle from Bitcoin as before.
The market transforms: Bitcoin is increasingly resembling gold
The change in investor behavior is reinforcing Bitcoin's position as a store of value, especially in the context of rising global inflation. An analyst remarked:
"This cycle could mark a transition for Bitcoin – from a risky asset to an inflation hedge, similar to gold."
Recent market developments also support this view. The US Dollar Index (DXY) just hit a three-year low, creating momentum for Bitcoin to surge. Yesterday, BTC surpassed the threshold of 87,000 USD, and continued its upward trend to 88,520 USD at the time of writing – the highest level since the beginning of this month.
Not only Bitcoin, gold is also benefiting from the weakness of the USD. The gold price has just set a new historical peak at 3,456 USD/oz, up 47% in just 12 months, according to a report from The Kobeissi Letter.
Bitcoin and gold: The "financial fortresses" amidst the economic storm?
The impressive bullish performance of both Bitcoin and gold is reshaping global investment thinking. With confidence in haven assets growing stronger, both are becoming the preferred choice amid economic uncertainty.
While the market continues to debate the future of altcoin, one thing is clear: Bitcoin is increasingly asserting its irreplaceable position in the world of digital finance.
Disclaimer*: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions*
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
BTC.D reaches a 4-year peak: A sign of the start of the altcoin season or a cautious signal?
The continuous increase in the Bitcoin dominance index (BTC.D) is raising many speculations about the possibility of a new altcoin season emerging. While some analysts expect that the adjustment of BTC.D could pave the way for altcoins to break out, some market experts are warning that the current cycle may differ significantly from previous stages.
According to them, current Bitcoin hodlers are not inclined to shift capital to altcoins as in previous cycles, making expectations for an "Altseason" more tenuous.
BTC.D reaches a 4-year high
The BTC.D index has reached its highest level in over four years, reaching 64.63%, up 11% since the beginning of 2025. This development has led many analysts to predict that a correction may be imminent.
"BTC.D is about to be rejected here. When that happens, altcoins will surge strongly!", he shared.
Some other analysts have also expressed optimism, including Merlijn The Trader who wrote:
"BTC.D is collapsing. The altcoin season is approaching – just a little more patience."
Altcoin needs new capital flow to increase in value
Scott Melker, the host of The Wolf Of All Streets Podcast, believes that the current cycle is unfolding very differently from previous stages. In a post on X, he argues that in the past, capital often flowed back and forth between Bitcoin and altcoin, but now, capital is flooding into Bitcoin from individual investors, institutions – even governments – without spreading to altcoin.
"Money cannot flow from ETFs to meme tokens," Melker commented.
He believes that many altcoin investors are selling off not because they want to switch their capital to BTC, but due to financial pressure, marking a "surrender" rather than a capital relocation strategy. This reflects a worrying reality: altcoins will struggle to recover without new inflows from outside, instead of relying on the capital cycle from Bitcoin as before.
The market transforms: Bitcoin is increasingly resembling gold
The change in investor behavior is reinforcing Bitcoin's position as a store of value, especially in the context of rising global inflation. An analyst remarked:
"This cycle could mark a transition for Bitcoin – from a risky asset to an inflation hedge, similar to gold."
Recent market developments also support this view. The US Dollar Index (DXY) just hit a three-year low, creating momentum for Bitcoin to surge. Yesterday, BTC surpassed the threshold of 87,000 USD, and continued its upward trend to 88,520 USD at the time of writing – the highest level since the beginning of this month.
Not only Bitcoin, gold is also benefiting from the weakness of the USD. The gold price has just set a new historical peak at 3,456 USD/oz, up 47% in just 12 months, according to a report from The Kobeissi Letter.
Bitcoin and gold: The "financial fortresses" amidst the economic storm?
The impressive bullish performance of both Bitcoin and gold is reshaping global investment thinking. With confidence in haven assets growing stronger, both are becoming the preferred choice amid economic uncertainty.
While the market continues to debate the future of altcoin, one thing is clear: Bitcoin is increasingly asserting its irreplaceable position in the world of digital finance.
Disclaimer*: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions*
Annie