Bitcoin dominance has surged to nearly 62% as of February 3, 2025, marking its highest level since February 2021. This indicates that BTC now commands the lion’s share of the total crypto market, leaving altcoins struggling to keep pace.

Bitcoin dominance measures the percentage of total cryptocurrency market capitalization held by BTC. A rising dominance suggests that capital is flowing primarily into Bitcoin, often at the expense of altcoins.

Why is BTC Gaining Dominance?

The last time BTC’s dominance was this high was in February 2021, when Tesla invested $1.5 billion in Bitcoin and announced plans to accept it as payment. This move triggered a surge past $44,000, ultimately leading to BTC’s all-time high of $68,000 in November 2021.

Currently, Bitcoin’s rising dominance is attributed to:

• Economic Uncertainty: Global fears of an economic slowdown and Trump’s tariff policies affecting trade with Mexico, Canada, and China.
• Struggling Altcoins: Many altcoins are seeing lower liquidity and weaker price action as traders move funds into BTC.
• Institutional Interest: Large investors are focusing on Bitcoin due to its relative stability and store-of-value narrative.

Kimchi Premium Surges to 12%

Another sign of strong Bitcoin demand is the Kimchi Premium—the price difference between BTC in South Korea and global markets. The premium has now hit 12%, the highest level in three years. This indicates heightened buying pressure in South Korea, a key region for crypto adoption.

Key Level to Watch: CME Gap at $102,000

One of the most talked-about levels is the CME Gap at $102,436, highlighted by CryptoRover, a prominent crypto analyst.

MASSIVE #BITCOIN CME GAP.

Normally, these gaps tend to get filled over the course of the week… pic.twitter.com/VYXYq7Ea2S

— Crypto Rover (@rovercrc) February 3, 2025

CME Gaps occur when Bitcoin’s price moves significantly while the CME futures market is closed, often leading to price retracements as the market corrects these gaps. Historically, BTC tends to fill these gaps over weekends, making this a critical level for traders monitoring price reversals or corrections.

Will Altcoins Recover?

While BTC’s dominance is currently strong, some analysts predict an altcoin season by February 2025. Historically, Bitcoin rallies first in a bull market, followed by a surge in altcoins as traders seek higher returns.

If BTC stabilizes near current levels, capital could start flowing into major altcoins, potentially igniting the next altcoin cycle.