Altcoin Market Cools Down as Bitcoin Dominance Increases

The cryptocurrency altcoin market experienced a downturn, reflected in the TOTAL3 index’s 6.41% decline over four days, while Bitcoin’s market dominance rose by 1.49%.

This downturn signals a shift towards Bitcoin as traders seek stability, impacting altcoin investments and highlighting market volatility.

Bitcoin Dominance Climbs Amid Altcoin Index Decline

Bitcoin (BTC) and Ethereum (ETH) have displayed shifts in their market presence, with Bitcoin’s dominance increasing by 1.49% and Ethereum’s shrinking by 4.20%, as per market data from BlockBeats News. Altcoin markets have seen significant retraction, exemplified by the TOTAL3 index’s 6.41% decline over four days.

The cooling of the altcoin market coincided with significant liquidations, amounting to $1.1 billion. Defensive investments favoring Bitcoin during times of heightened market volatility illustrate a strategic retreat to avoid losses.

Institutional forecasts from key exchanges such as HTX and Coinbase suggest a bullish fourth quarter for Bitcoin, fueled by ample liquidity. “We predict a strong start to the cryptocurrency market in the fourth quarter of 2025, driven by ample liquidity, favorable macro backdrop, and supportive regulatory developments, with Bitcoin poised to outperform.”— David Duong, Global Research Director, Coinbase

September Sales Driven by Macroeconomic Uncertainties

Did you know? Historically, September sell-offs in cryptocurrencies have been attributed to macroeconomic uncertainties rather than intrinsic market weaknesses, as noted by Coinbase research.

According to CoinMarketCap, Bitcoin’s value is $112,801.87, with a market cap reaching $2.25 trillion and representing 57.79% market dominance. Despite a 2.29% dip over 24 hours, Bitcoin’s dominance indicates strong investor preference amid market fluctuations.

The Coincu research team highlights that ongoing regulatory developments and liquidity dynamics are expected to continue shaping the crypto landscape. Observations from historical data show similar occurrences, with Bitcoin often outpacing during broader market corrections. As market focus intensifies on traditional powerhouse tokens, a potential comeback for altcoins remains contingent on favorable macroeconomic conditions.