Bitcoin’s market cap dominance has reached its highest point in three years, outpacing altcoins, which are experiencing a significant downturn in value. According to data from TradingView, Bitcoin’s share of the total cryptocurrency market cap soared to 56.3% on April 12.

Over the weekend, Bitcoin’s price saw a sharp decline, with a series of liquidations driving BTC/USD below $65,300. Meanwhile, altcoins suffered even more severe losses, with many of the top twenty cryptocurrencies by market cap dropping over 15%. As a result, Bitcoin has gained a larger share of the market, making the crypto market the most “Bitcoin-heavy” it has been since April 2021.

Popular trader and social media figure Bagsy commented on the trend, noting the significance of Bitcoin’s dominance amidst the constant influx of new altcoins. “I don’t typically look at Bitcoin dominance, but the chart is impressive considering the amount of new altcoins birthed into the market every day,” he remarked on X.

Trader Daan Crypto Trades highlighted the disparity in the market reactions between Bitcoin and altcoins. “The actual hit on $BTC was very minimal and the total downside also wasn’t very relevant,” he observed. “The real damage was done in the altcoin sector, which wiped out billions of Open Interest and made for wicks up to 50%.”

Historically, Bitcoin bull markets often begin with a spike in Bitcoin’s dominance, followed by altcoins rallying after a period of consolidation in the BTC/USD price. Although altcoins have performed well in 2024, they have not yet experienced a prolonged period conducive to significant gains.

Looking ahead, trader Mikybull Crypto predicts a shift in the market dynamics. “Altcoins market cap is perfectly following the previous Alts season step,” he posted on X. “This is the last shake-off before it rips explosively upward coupled with Bitcoin dominance trending downward.”