Bitcoin (BTC) dominance has spiked to a remarkable 60%, a surge that stems from the overall turmoil in the crypto market, which was begun when former President Donald Trump proposed new tariffs.
This seems very much like a “flight to safety” that large investors are taking. In any event, since dominance is calculated in relation to Bitcoin’s price, it has shot much higher since the price has been in the $18,000 to $20,000 range (as of the week of October 5). The sharp contrast in the price behavior of Bitcoin (up) and of pretty much almost everything else in the crypto space (down) has also fueled this increasing dominance.
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Whales Accumulate, Smaller Holders Begin Distribution
One of the clearest indications of this change in Bitcoin’s market dynamics comes from the actions of the large holders, often called “whales.” Data show that the large holders of Bitcoin, those with more than 10,000 BTC, briefly hit an ideal accumulation score of about 1.0 at the beginning of the month. An accumulation score of 1.0 would suggest very intense buying activity over a period of about 15 days, with these large Bitcoin holders capitalizing on market dips to acquire even more Bitcoin. However, since then, that accumulation score has eased back to around 0.65. To be clear, 0.65 is still a signal that’s way above what we would consider a neutral zone and still suggests that these large holders are acquiring Bitcoin.
Whales holding >10K $BTC briefly hit a perfect accumulation score (~1.0) at the turn of the month, reflecting intense 15-day buying. The score has since eased to ~0.65, still signaling steady accumulation.
Meanwhile, cohorts from <1 $BTC up to 100 $BTC have intensified their… https://t.co/cEo3F7Paid pic.twitter.com/7udA7G8nSM— glassnode (@glassnode) April 7, 2025
In stark contrast, smaller holders—those holding less than 1 BTC up to 100 BTC—have been increasingly distributing their holdings. These holders have seen a trend toward lower accumulation scores, hovering between 0.1 and 0.2, reflecting their tendency to sell into the market downturn. This clear divergence between large and small holders indicates that whales continue to see Bitcoin as a store of value in times of market stress, while smaller investors are either losing confidence or seeking to lock in profits by exiting their positions.
The divide in sentiment that is growing between different types of investors is highlighted by the contrasting behavior of large and small holders. While it is likely that the whales are seeing Bitcoin as a safe haven during these times of global uncertainty, the small holders might not be too confident in the volatility of the space right now and might be reducing their overall exposure to digital assets.
Bitcoin ETFs Face Significant Outflows
A different indicator of changing market sentiment involves Bitcoin spot exchange-traded funds (ETFs). Between March 31 and April 4, Bitcoin spot ETFs took a notable net outflow of $173 million. The larget outflow came from Grayscale’s Bitcoin Trust ETF (GBTC), which saw a weekly net outflow of $95.48 million. These developments mark a considerable retreat from Bitcoin investment products. The situation seems to be this: As the overall market slump continues, institutional investors and traders are using the opportunity to withdraw their exposure to Bitcoin.
From March 31 to April 4, Ethereum spot ETFs recorded a weekly net outflow of $49.93 million. The Ethereum ETF with the largest outflow during the week was Grayscale’s Ethereum Trust ETF (ETHE), with a weekly net outflow of $31.08 million.
Bitcoin spot ETFs saw a weekly net…— Wu Blockchain (@WuBlockchain) April 7, 2025
The outflows from Bitcoin ETFs occur at a time when the wider market is under pressure and when Bitcoin and other cryptocurrencies are facing downward price action. The proposal of new tariffs by Trump has further added to the uncertainty, magnifying the sell-off across digital assets. Investors who once saw Bitcoin as a hedge against inflation or as a risky asset have been re-evaluating their positions, especially as the traditional markets experience heightened volatility.
Even though there have been recent outflows, Bitcoin’s surge in dominance underscores its still being the number one cryptocurrency by market cap. Consistently, Bitcoin’s dominance has increased during a time when many other altcoins have seen their values drop and have struggled to maintain any semblance of stability. This is in stark contrast to Bitcoin, which has been just about the only digital asset not experiencing a considerable downturn during the present market turmoil.
Broader Market Turmoil Drives Increased Bitcoin Dominance
Bitcoin’s dominance also stems from the market conditions. When Trump announced new tariffs, global financial markets were thrown into disarray, and the ripple effect hit all sorts of investment vehicles—even cryptocurrencies. But during this impending period of uncertainty, what with USA inflation on the horizon, a lot of people are using Bitcoin as a hedge against potential market volatility, which is what further makes it seem like it’s dominating.
This enhanced dominance shines a light on Bitcoin’s growing stature as the top dog in the cryptocurrency marketplace. While altcoins have taken a serious pounding, Bitcoin continues to lure huge investments from institutional investors. These market whales are now betting that Bitcoin not only will ride out the current fund-raising storm but may also emerge from it with even greater strength as it tackles the challenges that lie ahead.
Conclusion: Bitcoin’s Rising Dominance Amid Market Stress
Bitcoin’s ascent to 60 percent dominance, in the midst of a broader market around turmoil, spotlights an ever-widening divergence in the behavior of big and small holders. While the whales seem to be ever accumulating more Bitcoin, the smaller holders appear to be opting to take their Bitcoin and run. Despite sizable outflows from Bitcoin ETFs and a broader crypto market downturn, the scene where Bitcoin’s price sits now is a still life with 60 percent dominance.
⚡️#Bitcoin dominance skyrockets to 60%$BTC dominance skyrockets to 60% following a crypto market crash triggered by broader market turmoil linked to Trump’s new tariffs. pic.twitter.com/1Tr0epaUr7
— CryptoRank.io (@CryptoRank_io) April 7, 2025
The current market instability, caused by worldwide financial pressures and Trump’s suggested tariffs, is probably going to keep affecting how investors behave. Bitcoin’s power to hold onto its dominance in the middle of such volatility speaks to its continuing attractiveness as a refuge for very large and very safe institutional investors. As smaller holders of the asset pass it along to someone else, the very big holders—”whales”—are seemingly making a move to accumulate en masse what is left of Bitcoin. And that suggests that an even better-positioned Bitcoin could re-emerge from this downturn.
Currently, Bitcoin maintains its status as the dominant force in the cryptocurrency sector. Its share of the total market capitalization of all cryptocurrencies has grown consistently over the past few months. Meanwhile, the total market cap of all cryptocurrencies remains well below its valuation from just last year, indicating how much the overall crypto space has declined. Part of that dominance for Bitcoin can be chalked up to its inflationary nature and how investors view it as a hedge against not only inflation but also the type of monetary and banking system instability seen of late.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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