The ongoing conflict between Israel and Iran has severely affected the stock market and cryptocurrency, but has not impacted BTCD. Since yesterday, the total market capital has decreased by approximately 6%.
While Bitcoin (BTC) and altcoins have decreased in value, BTCD has moved in the opposite direction, increasing by 1.4%. This development dims the hope for a potential altcoin season, pushing the timing of altcoin price increases into a more uncertain state.
Bitcoin Dominance Increases Despite Geopolitical Tensions
BeInCrypto reported earlier today that Israel's attacks on Iran caused a significant market decline, with liquidations exceeding 1 billion USD. The total cryptocurrency market capital decreased from 3.4 trillion USD to 3.2 trillion USD.
The market-wide selloff caused Bitcoin to drop by approximately 3.1%. However, altcoins suffered more significant losses, contributing to the increase in BTCD. Bitcoin Dominance increased from 63.8% to 64.7% at the time of writing.
Cryptocurrency Market Capital vs. Bitcoin Dominance. Source: TradingViewThis index, measuring Bitcoin's market capital as a percentage of the total cryptocurrency market capital, shows that investors are withdrawing from altcoins faster than from Bitcoin. Thus, this reinforces BTC's relative strength in a chaotic market environment.
However, this increase is significant for the anticipated but not yet arrived altcoin season. Many analysts had predicted a potential decline in BTCD as a sign of the beginning of an altcoin season.
However, market momentum seems to be moving in the opposite direction. A cryptocurrency analyst emphasized on X (formerly Twitter) that Bitcoin Dominance has reversed its trend and is moving upward.
"Key resistance between 64.31% and 64.63%. A sustained break above this area will indicate that wave-(2) is still developing upward," the post stated.
He forecast that if this occurs, it could delay the start of the altcoin season. Meanwhile, Benjamin Cowen, CEO and Founder of Into The Cryptoverse, emphasized that the ALT/BTC ratio has dropped from 0.34 in early May to 0.32.
Furthermore, he predicted that altcoins will lose more ground with the ratio potentially falling to 0.25 in the long term.
ALT/BTC Ratio. Source: X/Benjamin Cowen"I was optimistic about Bitcoin Dominance. I still am, but I was," Cowen posted.
In a private interview with Binance, Cowen emphasized Bitcoin's resilience compared to other digital assets. He highlighted that BTC is a "safe haven," especially in the context of macroeconomic instability such as inflation and unemployment.
"Bitcoin will survive regardless of what happens, regardless of what is coming to us. Bitcoin is likely to survive and continue, you know, ultimately rising back as it always does, but you can't always say the same about every altcoin," he commented.
The analyst also noted that most altcoins only experience brief successful periods, with only a few maintaining positions in the top five or ten over more than one cycle.
He warned that investors who have consistently invested Medium amounts in altcoins might face losses, as these assets typically decline compared to Bitcoin.
That is why an altcoin season might be necessary for these investors to break even. However, Cowen added that even if an altcoin season occurs, it might not arrive until November 2025.
