Bitcoin Price Tops $81K as Dominance Rises and Altcoins Show Early Recovery

Highlights:

• Bitcoin rises above $81,000 as dominance grows, showing investors still prefer the leading crypto.
• Altcoins show early recovery signs, with more tokens moving above key long-term trend levels.
• Analysts say altcoin demand is improving, but Bitcoin still controls the wider crypto market.

Bitcoin price moved back above $81,000 as its market dominance continued to rise, while altcoins started showing early signs of stability after a long, weak period. According to a CryptoQuant report published on Wednesday, Bitcoin has gained around 36% since its February 6 low. This shows that investors are still putting more money into Bitcoin first.

Advertisement

Bitcoin dominance also climbed above 61.3%, a level last seen in November last year. Bitcoin dominance means Bitcoin’s share of the total crypto market. When it rises, more money flows into Bitcoin than into other cryptocurrencies. This shows that traders still see Bitcoin as the safer and stronger crypto asset in the current market.

BTC Breaks 81K as Dominance Rises, but Altcoins Show Early Stabilization

“Trading volumes for altcoins on Binance are also showing signs of gradual recovery. Their share relative to the combined BTC and ETH volumes on Binance has increased from 31% to 49%.” – By @Darkfost_Coc pic.twitter.com/C56oeBEQuR

— CryptoQuant.com (@cryptoquant_com) May 6, 2026

Bitcoin Dominance Shows Strong Capital Flow

CryptoQuant analyst Darkfost said Bitcoin’s price and dominance are moving in the same direction. This means capital is still mostly focused on Bitcoin. This usually happens when investors want crypto exposure but do not want to take higher risks in smaller tokens. Bitcoin often leads the market during uncertain times. Many investors first buy Bitcoin before moving into Ethereum or other altcoins. For now, the latest data shows that Bitcoin still has the strongest market position.

However, the wider crypto market is not completely weak. The TOTAL3 index, which tracks altcoins excluding Bitcoin and Ethereum, has also gained around 15% since the February 6 low. This gain is smaller than Bitcoin’s rise. Still, it shows that altcoins are slowly recovering. 

Altcoins Show Early Recovery Signs

CryptoQuant data also showed some improvement in altcoins. On February 6, only 2.3% of Binance-listed altcoins were trading above their 200-day moving average. That figure has now increased to 11.7%. The 200-day moving average is a common market indicator. Traders use it to check whether an asset is in a strong or weak long-term trend. When more altcoins move above this level, it can show that selling pressure is getting weaker.

The figure is still low. So, it does not confirm a full altcoin rally yet. However, the rise from 2.3% to 11.7% shows clear improvement.  Darkfost called it an early recovery signal. He said it is important because it breaks the downtrend that started in October last year.

Trading activity also shows a slow change. Altcoin trading volume on Binance, relative to Bitcoin and Ethereum, has increased from 31% to 49% over the past two months. This rise shows that traders are slowly returning to altcoins after a long period of weak demand.

The latest data does not mean altcoin season has started. BitMEX co-founder Arthur Hayes also shared a cautious view at Consensus Miami. Hayes said many weak altcoins could eventually go to zero. He said the market may remove projects with little use, demand, or revenue. He described this as a normal market reset, not the end of crypto.

ARTHUR HAYES WARNS MOST ALTCOINS COULD GO TO ZERO

Arthur Hayes (@CryptoHayes) says up to 99% of altcoins may eventually lose all value. He framed it as a normal market cycle rather than a collapse of crypto.

Hayes compared it to long term turnover in major equity indices. He… pic.twitter.com/isuebrdF11

— BSCN (@BSCNews) May 6, 2026

At the time of writing, BTC was trading at $81,963, up 1.5% in the past 24 hours.

Advertisement