As of August 20, 2025, the market share of Bitcoin (BTC) has dropped to around 59%, reaching a new low in nearly six months. This data shows a significant decline from 65% in May, indicating that funds are systematically flowing to other crypto assets.
At the same time, this morning, Bitcoin price briefly fell below the $113,000 mark, currently reported at $113,695.92, with a 24-hour decline of 1.2%. This fluctuation occurred against the backdrop of Bitcoin’s multiple attempts to test the psychological resistance level of $118,000 without success.
Market share status: BTC’s dominance continues to decline.
CoinMarketCap’s latest data shows that Bitcoin’s dominance has dropped to 58.7% (a decrease of 4.24%), while Ethereum’s dominance has risen to 13.9% (an increase of 3.71%). The total share of other alts has also increased by 0.52%, reaching 27.4%.
This structural shift has broken Bitcoin’s long-standing dominance of over 60%, marking the largest decline since December 2024 (53.9%).
The 50-day moving average of Bitcoin’s dominance has fallen below the 200-day moving average, forming a pattern in technical analysis known as a "death cross," which traditionally indicates a weakening of the underlying trend.
Historical Perspective: 12 Years of Market Share Transition
Historically, Bitcoin experienced significant changes in market share from 2013 to 2025, dropping from as high as 99.1% to 31.1%, and then gradually recovering to nearly 60% in the later period.
From 2013 to 2016, Bitcoin held an absolute dominance in the crypto market, with a daily market share ranging between 82.6% and 93.3%. On May 29, 2013, Bitcoin’s market share even reached a historical peak of 99.1%.
From 2017 to 2018, the ICO boom and the rise of altcoins led to a significant decline in Bitcoin’s market share. On May 16, 2017, Bitcoin’s market share fell below 50% for the first time, reaching 48.5%. On January 16, 2018, it even set a historical low of 31.1%.
From 2023 to 2025, Bitcoin’s market share steadily increased from 38.4% at the beginning of 2023 to 58.5% so far in 2025. This trend reflects a structural shift in the crypto market, with Bitcoin gaining broader recognition and institutional adoption.
Capital Migration: Ethereum Leads the Alts Market Recovery
Ethereum has become the biggest beneficiary of this round of capital migration. Its price rose by 54% in a single month, significantly outperforming Bitcoin’s 10% increase during the same period. In mid-August, ETH once approached the historic high of $4,785, just one step away from breaking the record.
The deepening participation of institutions is the core driving force. ETF issuers led by BlackRock and Fidelity achieved a single-day inflow of $503 million on August 7, and industry giants like BitMine announced a $24.5 billion ETH accumulation plan.
This capital transfer has begun to spread to a wider range of alts: Chainlink (LINK) surged 23.1% in a week, the total market capitalization of the Ethereum ecosystem increased by 3.25% in 24 hours, reaching $734 billion, and Layer 1 projects like Solana and XRP also attracted incremental capital inflows.
Market indicators: Is the altcoin season critical point approaching?
The Coinbase institutional research team pointed out for the first time in a report released on August 15: "The current market environment indicates that as September approaches, we may be迎来 a turning point for a full altcoin season."
The altcoin season standard they defined is: at least 75% of the top 50 alts by market capitalization have outperformed Bitcoin in the past 90 days.
Although the current Altcoin Season Index is at 44 (below the critical value of 75), it has surged nearly 147% from below 25 in July. The historical similarity is noteworthy: the Bitcoin dominance rate has shown its first monthly bearish crossover since January 2021, and similar signals previously triggered a sustained upward movement in alts for four months.
Technical Analysis: BTC shows a weak structure in the short term
The short-term technical structure of Bitcoin shows weakness. The price has fallen below the support of the EMA50 moving average, and the RSI indicator shows a bearish divergence after being overbought. The key support level has moved down to $114,500, while the resistance level remains at $118,500.
From the 4-hour chart, the EMA cluster (20/50/100/200) for BTC is concentrated between $116,400 and $117,500, forming a "bearish stack," indicating that the bulls need to reclaim $116,800 to restore short-term momentum.
The Directional Movement Index (DMI) shows that -DI is leading +DI, with the ADX rising to 32, indicating that the bearish bias is strengthening. Meanwhile, the Supertrend indicator has turned bearish at $117,900 on the 4-hour chart.
Macroeconomic Environment: Interest Rate Cut Expectations May Boost the Crypto Market
The macro environment provides favorable support for the cryptocurrency market. The probability of the Federal Reserve cutting interest rates in September has reached 92%, and the July CPI year-on-year at 2.7% has alleviated inflation concerns, with 2 members of the Federal Open Market Committee (FOMC) already voting in favor of the rate cut.
A low interest rate environment could release about $350 billion in retail funds from money market funds, further boosting the risk appetite for the crypto market. This macro backdrop could be particularly favorable for high-risk altcoin investments, as they typically have higher beta values than Bitcoin.
Future Outlook: Investment Opportunities in a Diverse Market Landscape
As Bitcoin’s dominance approaches the critical watershed of 55%, the market stands on the brink of a transition between old and new cycles. If the Federal Reserve cuts interest rates in September, Coinbase predicts a "full altcoin season" could trigger Ethereum to break the historical peak of $4,785 and drive mainstream alts like SOL and XRP to replicate ETH’s recent extraordinary gains.
Despite the short-term support of BTC looking at $114,500, in the medium to long term, the continuous inflow of institutional funds through ETFs and the accumulation behavior shown on-chain still lay the foundation for Bitcoin to break through the previous high of $124,000.
The cryptocurrency market has never been so diverse, nor has it ever been so full of tension. While investors pay attention to the changes in Bitcoin’s market share, they should also closely monitor the rotation opportunities of fund flows into different sectors, especially investment opportunities in Layer 1, DeFi, and infrastructure projects.
Future Outlook
The change in Bitcoin’s market share resembles a "fund rotation" rather than "fund exodus." When Bitcoin’s price is temporarily consolidating, investors begin to search for other crypto assets to obtain higher returns.
Market data shows that Ethereum is the biggest beneficiary, with a monthly price increase of 54%, significantly outperforming Bitcoin’s 10% increase during the same period. This capital shift has begun to spread to a wider range of alts, with Chainlink seeing a weekly increase of 23.1%, and Layer 1 projects like Solana and XRP also attracting incremental capital inflows.
In the face of market changes, investors need to recognize that the cryptocurrency market has never been so diverse and has never been so full of tension. The fluctuation range of Bitcoin’s market share is gradually narrowing, indicating that the market is tending towards stability and maturity.
