 ▲ Bitcoin (BTC), U.S. Dollar (USD) / ChatGPT-generated image |
As capital flows in the cryptocurrency market shift toward stablecoins rather than altcoins, Bitcoin (BTC) continues to maintain a substantive bullish trend despite its seemingly stagnant market dominance.
Veteran trader Benjamin Cowen said in a video released on his YouTube channel on February 15 (local time) that even if Bitcoin dominance has reached a local peak, it does not signal the immediate start of an altcoin season. Cowen emphasized that Bitcoin has been a better investment than altcoins in recent years, diagnosing that Bitcoin dominance remains in a macro uptrend. He also provided a detailed analysis of why the market movements since September—when investor attention intensified—did not translate into a strong rebound for altcoins.
Although major cryptocurrencies such as Ethereum (ETH), Solana (SOL), and BNB have underperformed against Bitcoin since September, the dominance index has not risen significantly because capital has flowed into stablecoins instead. Cowen explained that funds exiting altcoins sought refuge in perceived safe assets such as Tether (USDT) and USD Coin (USDC) rather than rotating into Bitcoin, leading to a sharp increase in stablecoin dominance. This suggests that investors are sheltering in cash-equivalent assets to avoid market uncertainty.
When stablecoins are excluded, Bitcoin’s effective market dominance stands at 67%, higher than the level recorded in May 2025. While the figure including stablecoins remains at 58%, a closer look reveals that Bitcoin’s dominant position remains solid. Cowen predicted that, similar to 2022, once the market capitalization of stablecoins begins to decline, those funds could flow back into Bitcoin, acting as a catalyst to push its dominance index higher once again.
The macroeconomic environment was also cited as a key factor supporting Bitcoin’s strength. Cowen noted that the Federal Reserve’s policy rate remains above the neutral rate, delaying a full-scale rotation of capital into altcoins. Unlike periods of quantitative easing that inject liquidity into the market, the current tightening environment favors Bitcoin over riskier altcoins. According to Cowen, market leadership is likely to remain with Bitcoin until interest rate cuts begin in earnest.
The cryptocurrency market is following a typical pattern in which altcoins are hit first while Bitcoin remains in a broader correction phase. Cowen expects that when liquidity currently parked in stablecoins reenters the market, Bitcoin dominance will break above its previous highs and assert control once again. The current trend mirrors the second half of 2019, suggesting that Bitcoin may once again seize strong leadership when the next bull market begins. Investors should focus less on surface-level index fluctuations and more on the actual flow of capital to capture the next opportunity.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses arising from decisions based on it. The content should be interpreted for informational purposes only.*