Bitcoin Dominates Market Capital as Altcoin Trading Volume Halves

▲ Bitcoin (BTC)

As capital concentrates into Bitcoin (BTC) in the virtual asset market, the so-called “Bitcoin dominance” phenomenon—where altcoin trading volume is cut in half—is intensifying.

According to cryptocurrency-focused media outlet The Crypto Basic on Feb. 18 (local time), Bitcoin’s market dominance has surged sharply. In contrast, trading volume in the altcoin sector has recently dropped by nearly 50%, reflecting waning investor interest. As geopolitical tensions escalate and uncertainties stemming from trade conflicts grow, investors are restructuring their portfolios toward Bitcoin, which is perceived as a relatively safer asset.

Major altcoins, including Ethereum (ETH), are struggling to defend price levels amid a sharp decline in trading value, effectively losing market leadership. Data analysis from Santiment shows that investor sentiment in the altcoin market has plunged into extreme fear territory, mirroring patterns seen during the 2025 bear market. With reduced altcoin inflows to exchanges and a disappearance of buying pressure, even signs of a technical rebound are difficult to find.

Meanwhile, Bitcoin is demonstrating unrivaled dominance, accounting for more than half of the total trading volume in the digital asset market. Explosive growth in open interest, coupled with steady institutional inflows into spot Bitcoin ETFs, is turning Bitcoin into a liquidity black hole. Continued accumulation pledges by Strategy Chairman Michael Saylor and news of large-scale Bitcoin acquisitions by American Bitcoin are further reinforcing Bitcoin’s market superiority.

Shifts in the regulatory environment are also contributing to the growing aversion toward altcoins. Coin Center has pointed out that efforts by the Senate Judiciary Committee to remove developer protection provisions pose a critical threat to altcoin projects lacking technical certainty. Investors are increasingly seeking refuge in Bitcoin, which carries relatively lower legal risk and has established itself within the institutional framework, triggering a natural market correction.

As capital flows in the digital asset market narrow toward Bitcoin as a single asset, competition for survival among altcoins is expected to intensify. Rather than driving a broad market recovery, Bitcoin’s entry into a new volatility regime is acting as a force that pulls capital away from altcoins, suggesting that polarization within the market is likely to persist for the time being.

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