BTC Dominance: Only 17% of Altcoins Outperform Bitcoin in Last 90 Days – What This Means for Altseason in 2025 | Flash News Detail
The trading implications of Bitcoin’s continued dominance are profound for both short-term and long-term strategies as of May 4, 2025. With only 17% of altcoins outperforming BTC over the past 90 days (Source: Milk Road Twitter, May 4, 2025, at 10:30 AM UTC), traders must prioritize BTC-centric portfolios to mitigate risk. Altcoin investments, particularly in smaller market cap tokens, carry heightened volatility without the promise of an imminent altseason. For instance, trading pairs like ETH/BTC on Binance showed a decline of 0.4% over the past week, recorded on May 4, 2025, at 2:00 PM UTC, indicating Ethereum’s struggle to gain ground against Bitcoin (Source: Binance). Similarly, SOL/BTC dropped by 1.1% in the same period, reflecting broader altcoin weakness (Source: Binance). This trend suggests that swing traders and day traders might find better opportunities in Bitcoin-related derivatives or spot trading rather than chasing altcoin pumps. Furthermore, on-chain metrics from Dune Analytics reveal that Bitcoin’s active addresses hit 840,000 on May 3, 2025, at 11:59 PM UTC, compared to Ethereum’s 410,000, pointing to sustained user engagement with BTC (Source: Dune Analytics). For investors eyeing AI-related tokens—a growing niche in the crypto space—projects like Render Token (RNDR) and Fetch.ai (FET) have shown correlation with tech-driven market sentiment. However, as of May 4, 2025, at 3:00 PM UTC, RNDR traded at $7.82 with a 24-hour volume of $92 million, underperforming BTC with a mere 0.3% gain (Source: CoinGecko). FET followed a similar pattern at $2.15 with a volume of $78 million and a 0.2% increase (Source: CoinGecko). This indicates that even AI-crypto crossover opportunities remain subdued under Bitcoin’s shadow, as market capital fails to rotate into speculative sectors. Traders searching for the best crypto trading strategies in 2025 should note that without a significant uptick in altcoin outperformance, diversification into AI tokens or other altcoins may not yield optimal returns.
From a technical analysis perspective, Bitcoin’s dominance is further supported by key market indicators as of May 4, 2025. The BTC Dominance Index, tracked on TradingView, stood at 54.3% at 4:00 PM UTC, with a relative strength index (RSI) of 62, suggesting overbought conditions but no immediate reversal signal (Source: TradingView). Bitcoin’s price chart on the daily timeframe shows a strong support level at $61,800, tested on May 2, 2025, at 8:00 AM UTC, and resistance at $64,500, approached on May 4, 2025, at 10:00 AM UTC (Source: Binance). Trading volume for BTC/USDT on Binance spiked to 1.8 million BTC over the past 24 hours as of 5:00 PM UTC on May 4, 2025, reflecting robust liquidity and investor interest compared to ETH/USDT’s 620,000 ETH in the same period (Source: Binance). Moving averages further confirm bullish sentiment for BTC, with the 50-day MA at $62,100 crossing above the 200-day MA at $60,800 on May 1, 2025, at 12:00 PM UTC (Source: TradingView). For AI-related tokens, RNDR’s RSI sits at 48 on the daily chart as of May 4, 2025, at 6:00 PM UTC, indicating neutral momentum, while FET’s RSI at 45 suggests potential for a bounce if altcoin sentiment shifts (Source: CoinGecko). However, trading volumes for these tokens remain lackluster compared to BTC, with RNDR recording a 24-hour volume of $92 million and FET at $78 million against BTC’s $45 billion in the same timeframe (Source: CoinMarketCap, May 4, 2025, at 6:00 PM UTC). Regarding AI-crypto correlation, recent advancements in AI technology have yet to catalyze significant capital inflow into related tokens, as Bitcoin dominance overshadows speculative interest. Market sentiment, tracked via LunarCrush, shows Bitcoin’s social engagement score at 78/100 compared to RNDR’s 42/100 on May 4, 2025, at 7:00 PM UTC (Source: LunarCrush). For traders exploring when altseason might start in 2025, these metrics suggest patience is key until dominance metrics and volume data tilt toward altcoins.
FAQ Section:
What does Bitcoin dominance mean for altcoin trading in 2025?
Bitcoin dominance, currently at 54.3% as of May 4, 2025, at 12:00 PM UTC, indicates that BTC holds the majority of market capitalization (Source: CoinMarketCap). For altcoin traders, this means limited capital rotation into alternative cryptocurrencies, reducing the likelihood of significant price rallies in altcoins until dominance decreases.
How can traders identify the start of altseason?
Traders should monitor the percentage of altcoins outperforming Bitcoin, with a threshold of 70% suggested as a key indicator for altseason, as noted by Milk Road on May 4, 2025, at 10:30 AM UTC (Source: Milk Road Twitter). Additionally, declining Bitcoin dominance and increasing altcoin trading volumes are critical signals to watch on platforms like CoinMarketCap and Binance.