Bitcoin Hits $125K Record, Altcoin Season Delayed

Bitcoin cemented its dominance over the cryptocurrency market this weekend, soaring to a new record high of $125,506 according to CoinGecko data. This 11% weekly surge propelled Bitcoin’s market dominance—its share of the total crypto market capitalization—to a three-week high of 59%. The milestone represents Bitcoin’s strongest position relative to alternative cryptocurrencies in recent weeks, signaling concentrated investor confidence in the digital asset often described as the market’s bellwether.

Stephen Gregory, founder of crypto trading platform Vtrader, identified key drivers behind Bitcoin’s ascent, pointing to last week’s surge in the stablecoin market cap to $300 billion and the release of $1 billion in frozen funds from the defunct exchange FTX. “This facilitated capital inflows to Bitcoin, pushing its dominance close to 60%,” Gregory told Decrypt. The convergence of these factors created perfect conditions for Bitcoin to absorb significant market liquidity while altcoins remained relatively stagnant.

Shivam Thakral, CEO of Indian crypto exchange BuyUcoin, contextualized the phenomenon within broader market patterns. “It’s pretty normal for investors to pile into Bitcoin first during bull runs,” he explained, describing Bitcoin as the “market’s anchor.” This status has been amplified by renewed interest from institutional investors, who typically initiate positions in Bitcoin before diversifying into riskier altcoin assets.

The current market dynamic reflects a clear preference for established assets amid renewed institutional participation. Gracy Chen, CEO of Bitget, characterized the dominance metric as “a clear signal of capital gravitating toward the market’s most trusted asset amid renewed institutional demand and broader volatility.” This institutional confidence has created a self-reinforcing cycle where Bitcoin’s strength attracts more capital, further increasing its dominance while sidelining alternative cryptocurrencies.

The psychological aspect of Bitcoin’s dominance cannot be overstated. During periods of market uncertainty or strong bullish momentum, investors historically flock to Bitcoin as the safest bet within the crypto ecosystem. This behavior was particularly evident during the recent surge, where Bitcoin’s established track record and liquidity made it the preferred destination for both the $1 billion in released FTX funds and new capital entering through stablecoin channels.

Le Shi, managing director at algorithmic trading and market-making firm Auros, reinforced the positive sentiment during an interview at Token2049 in Singapore last week. “It is a very good time for the markets, and is likely going to remain that way for the short-term foreseeable future,” he noted, suggesting that the current conditions favor continued strength in the crypto sector overall, even if concentrated in Bitcoin for now.

The critical question for investors is whether Bitcoin’s dominance marks the end of the much-anticipated “altcoin season”—a period where alternative cryptocurrencies dramatically outperform Bitcoin. The consensus among experts suggests the altseason is delayed rather than cancelled. “This doesn’t mean the end of alt season,” affirmed Vtrader’s Stephen Gregory, though he issued a note of caution about potential market volatility ahead.

Gregory believes that Bitcoin’s declining bullish momentum may lead to a “bear trap that could flush out more leverage” before the market resumes its ascent. Under these conditions, if Bitcoin’s dominance fails to push significantly above 60%, capital could quickly rotate, “resulting in an altcoin pump.” This scenario would see sidelined liquidity flowing into high-conviction sectors like AI, DeFi, and layer-2 solutions once Bitcoin stabilizes.

Prediction markets reflect this nuanced outlook. Users of Myriad, launched by Decrypt’s parent company DASTAN, place a roughly 60% chance on Bitcoin’s dominance surging to 64% instead of dropping to 54%, down from 69% at the start of the month. This suggests that while continued Bitcoin strength is the more probable short-term outcome, the door remains open for an altcoin rotation.

Bitget’s Gracy Chen provided the clearest signal for investors watching for the altseason trigger. She advised monitoring Bitcoin’s dominance moving below 55% as a potential catalyst for altcoin momentum. “A true altseason may still be a few weeks away and awaits Bitcoin’s consolidation to trigger a capital rotation,” Chen explained, emphasizing that patience and strategic positioning will be key for investors seeking to capitalize on the eventual shift.