In June 2025, Bitcoin continues its relentless climb, trading near its all-time high of $111,970, while altcoins like Ethereum (ETH) and others remain mired in a slump, with many down over 40% from their peaks. Let’s explore why Bitcoin soars while altcoins stagnate.
Why Bitcoin Soars While Altcoins Stagnate
Bitcoin soars, creating a unique market dynamic where Bitcoin’s rally fails to lift altcoins, a stark contrast to past cycles. Meanwhile, spot trading volume on centralized exchanges (CEXs) has dropped to $1.07 trillion, the lowest since September 2024, highlighting shifting investor behavior.
The underperformance of altcoins is driven by several key factors:
- Institutional Dominance: According to Min Jung of Presto Research, the current bull run is fueled by institutional investors, hedge funds, asset managers, and firms like BlackRock, rather than retail traders who typically drive altcoin rallies.
- Retail Absence: Retail investors, discouraged by altcoins’ weak performance, have largely stayed on the sidelines, reducing trading activity on CEXs, which rely heavily on retail participation.
- Market Psychology: Posts on X suggest a growing perception that Bitcoin is the “safe” crypto asset, with market makers potentially suppressing altcoin prices to reinforce Bitcoin’s dominance, which recently hit 66%.
DEXs Gain Traction Amid Altcoin Slump
While CEXs falter, decentralized exchanges (DEXs) are thriving, driven by platforms like Hyperliquid. Key reasons for this shift include:
- Enhanced User Experience: Newer DEXs offer seamless trading interfaces and lower costs, attracting users disillusioned with CEXs.
- Privacy and Control: Investors seeking greater control over their assets are gravitating toward DEXs, especially as altcoins struggle to draw interest on centralized platforms.
Outlook for Altcoins
The crypto market remains Bitcoin-centric, but some analysts see potential for an altcoin revival. Bitcoin’s dominance may peak soon, potentially sparking an “altcoin season” for tokens like Solana or XRP if fresh capital enters the market. Regulatory clarity or broader economic shifts could also serve as catalysts. Until then, altcoins remain in Bitcoin’s shadow, as the market navigates this unprecedented divide.
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