Bitcoin's market dominance has surpassed 62%, its highest level since March 2021, despite a 29% price correction.
Despite a slight increase on February 3, the uptrend has recently appeared more sustainable.
Since December, Bitcoin's dominance share has gradually increased from 55%, dashing hopes of an altcoin season.
Matrixport noted that the increased dominance indicates a decline in investor interest in altcoins, favoring Bitcoin, which continues to outperform despite its recent decline.
Analysts believe that reaching 70% dominance could represent the peak of the current cycle, while most altcoins remain below 50% of their previous peaks.
Ethereum was the hardest hit, with its market share falling to 8.5%, its lowest level in five years, and its price falling below $1,800, as the currency continues to weaken against Bitcoin.
Solana, which relies heavily on meme coins, has lost 60% of its value in two months, while its revenue has fallen by 90%.
Cardano and Dogecoin remain 76% below their peak, while coins such as LINK, XLM, AVAX, SHIB, BCH, LTC, and DOT have lost more than 70% of their previous highs.
Short-term Bitcoin holdings (less than a month) saw significant increases in March and December 2024, reaching 23% and 24.5%, respectively. This coincided with the market downturn, pushing the market-reported value (MVRV) ratio to 1.8, close to this year's low of 1.71.
Analysts believe that if Bitcoin continues to fall to the $70,000 range, the MVRV ratio could fall to levels seen at the bottom of the market correction.
However, the general decline in sentiment has led to altcoins losing most of their gains, leaving most investors out of the profit range for this cycle.
