Recently, an interesting phenomenon has emerged in the crypto market: Bitcoin's market share remains stable above 67%, while the altcoin index is stuck at around 23%. Some say this marks the beginning of the BTC dominance era, while others believe it's just a short-term market sentiment fluctuation. What's the real story?

From a data perspective, the capital flow is quite clear. Institutional investors and retail traders are flocking into BTC, while altcoin projects are relatively cooling off. The logic behind this phenomenon is understandable: when macro uncertainty increases, investors naturally prefer lower-risk assets, and BTC, as the most liquid and consensus-driven asset in the crypto world, easily becomes a safe haven for funds.

But here’s an interesting reverse thought. Historical data shows that whenever the altcoin index drops below 25%, it often signals that market sentiment has reached an extreme. What does an extreme sentiment usually mean? It indicates that the pricing may have deviated significantly. Well-performing DeFi projects and AI application tokens might already be trading at very attractive levels.

Different investors have varying views on this situation. BTC believers think the bull run has finally arrived, allowing them to focus solely on Bitcoin; steadfast altcoin supporters believe this is just a correction phase, and once new applications and innovative models are launched, a reversal will happen quickly; meanwhile, some off-chain observers are puzzled about the authenticity of these data.

Overall, the market is sending a clear signal—that the preference for safety and liquidity is rising. But to say BTC is now the only king and altcoins are completely out of the game is premature. The market’s pendulum is always swinging, and extremes often signal a turning point.