BTC Dominance Surges Past 63%: Market Landscape and Future Trend Analysis
As of June 4, 2025, Bitcoin Dominance, which is the percentage of Bitcoin’s market capitalization in relation to the total market capitalization of the entire cryptocurrency market, has risen to 63.13%, remaining close to its one-year high. This key indicator not only reflects Bitcoin’s leading position but also reveals profound changes in market capital flows and investor sentiment.
Data Pivot: The Current Status of Bitcoin Dominance
- Market share: The current market value of Bitcoin has reached $2.09 trillion, while the total market value of global cryptocurrencies is approximately $3.43 trillion, with Bitcoin holding an absolute dominance with over 60% share.
- Annual comparison: Compared to a year ago, Bitcoin’s dominance has significantly increased (an increase of about 7%), while the total market value of cryptocurrencies has grown by 24.39%, highlighting that Bitcoin’s growth momentum is stronger than the market average.
- Competitive Landscape: Ethereum (ETH) holds the second position with a share of 9.52%, stablecoins account for 7.32%, while the remaining thousands of tokens (including altcoins and meme coins) only share the remaining approximately 22% of the market.
The core driving force behind the surge in dominance rate
- Policy Expectations Drive: The Trump administration has nominated a cryptocurrency supporter to serve as the Chairman of the U.S. Securities and Exchange Commission (SEC) and has expressed intentions to establish a “national strategic Bitcoin reserve,” which has strengthened the market’s expectations for regulatory easing. Institutions predict that if the policy is implemented, the total market value of cryptocurrencies could reach $10 trillion by 2025, Bitcoin price or reach 300,000 dollars.
- Hedging attributes highlighted: In recent market fluctuations, Bitcoin has shown resilience stronger than traditional stock markets. Fidelity Investments pointed out that Bitcoin’s Sharpe ratio (risk-return indicator) is approaching that of gold, further recognizing its status as a reserve asset of “digital gold.”
- Capital concentration effect: On-chain data shows that in the past week, there was a net outflow of 15,700 BTC, bringing the total balance down to 2.2 million BTC, indicating a strong reluctance to sell among long-term holders. At the same time, the Bitcoin holdings of publicly listed companies worldwide have exceeded 600,000 coins, with a clear trend of institutional accumulation.
Market signals behind the dominance rate
The Bitcoin dominance rate has broken through 63%, which not only indicates a technical rebound but also reflects a threefold logic of regulatory shifts, institutional entry, and macro hedging. Despite the continuous innovation of altcoins and emerging tokens, Bitcoin still dominates the market narrative as the “cornerstone of crypto.” In the future, if the U.S. Bitcoin spot ETF continues to achieve significant net inflows, or if more countries/regions establish Bitcoin strategic reserves, the Bitcoin dominance rate may further rise. Investors need to be cautious of the pace of policy implementation and leverage risks, maintaining a dynamic balance between leading effects and ecological diversification in their positions.
