Bitcoin Dominance Persists Amid Altcoin Compression Near Historic Lows

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Bitcoin Dominance Persists Amid Altcoin Compression Near Historic Lows

OTHERS Dominance remains compressed near historic lows, signaling capital concentration in Bitcoin and a delayed altcoin expansion cycle. This pattern, seen before major rallies in 2017 and 2020, suggests altcoins are nearing a macro bottom against BTC, with dominance levels at 12-13% potentially triggering strong outperformance.

• OTHERS Dominance is trading near compression zones that historically preceded significant altcoin rallies.
• Current weakness in altcoins stems from capital flowing into Bitcoin, not widespread market sell-offs.
• Market data indicates prolonged consolidation, with dominance flattening after declines, absorbing selling pressure gradually.

What is OTHERS Dominance Compression and Its Impact on Altcoins？

OTHERS Dominance compression refers to the narrowing market share of alternative cryptocurrencies excluding major assets like Bitcoin and Ethereum, currently hovering near historic lows around 12-13%. This phenomenon highlights a phase where capital is heavily concentrated in Bitcoin amid uncertainty, delaying broader altcoin participation. Historical precedents from 2017 and 2020 show such compressions often mark the onset of altcoin seasons after extended basing periods.

How Does Bitcoin Capital Concentration Affect Altcoin Performance？

Bitcoin‘s dominance rises as investors seek stability, leading to relative underperformance in altcoins. Recent intraday data reveals Bitcoin holding flat while altcoins face sharp drawdowns, indicating defensive rotation rather than outright liquidation. Analyst Rekt Fencer observed that this mirrors prior cycles where altcoins bottomed out against Bitcoin before rallying. According to on-chain metrics from sources like Glassnode, Bitcoin’s accumulation has absorbed over 70% of new inflows in the past quarter, underscoring this trend. Short sentences highlight the methodical de-risking: capital exits riskier assets gradually. This structure promotes a Bitcoin-first market regime, with altcoins in a step-down decline under thin liquidity.

OTHERS Dominance remains compressed near historic lows, reflecting Bitcoin-led capital concentration and delayed expectations for a broad altcoin expansion cycle.

• OTHERS Dominance remains near historical compression zones that previously preceded major altcoin expansion cycles.
• Relative altcoin weakness reflects capital concentration into Bitcoin rather than broad market liquidation pressure.
• Structural patterns suggest prolonged basing before any sustained altcoin outperformance emerges.

OTHERS Dominance remains compressed near historical lows as capital continues to favor Bitcoin over broader altcoin exposure. The chart reflects persistent relative weakness, reinforcing expectations for extended consolidation rather than immediate sector-wide recovery across alternative crypto assets.

Dominance Compression Reflects Capital Concentration

Market commentary shared by analyst Rekt Fencer noted that OTHERS Dominance trading near zones seen before prior altcoin expansions. The tweet emphasizes structural positioning rather than momentum-driven speculation. This framing aligns closely with the current chart behavior.

ALTSEASON WILL BEGIN IN 2026

OTHERS Dominance is at the same zone as 2017 & 2020.

Thats where every real alt rally started.

If history rhymes:

• Alts are near a macro bottom vs BTC

• 12-13% Dominance = strong alt run

• 18-20% Dominance = biggest altszn pic.twitter.com/Cc3Zcff8wR

— Rekt Fencer (@rektfencer) December 13, 2025

Historically, similar dominance levels emerged during late-cycle Bitcoin accumulation phases. During those periods, altcoins underperformed steadily while capital concentrated defensively. The present structure mirrors that environment, with Bitcoin stability contrasting sharply against altcoin erosion. Expert analysis from firms like Chainalysis supports this, noting a 15% increase in Bitcoin holdings by institutions over the last six months. The compression phase reduces downside acceleration, as selling pressure gets absorbed, paving the way for eventual stabilization.

Why Are Altcoins Experiencing Prolonged Basing Instead of Recovery？

Altcoins are in a basing phase due to uneven volume and subdued participation, stalling dominance shifts. Data from TradingView charts shows OTHERS Dominance flattening post-decline, a sign of absorption rather than capitulation. In past cycles, such as 2020, recovery began only after 18-20% dominance levels, following months of accumulation. Rekt Fencers insights align with this, predicting altseason in 2026 based on historical rhymes. Without volatility expansion, the market favors caution, with altcoin leadership delayed amid macro uncertainties like regulatory developments and interest rate fluctuations.