Bitcoin has reclaimed the $81,400 level after rallying nearly 36% from its February 6 low, according to latest market data. The cryptocurrency's dominance has climbed above 61.3% in CryptoQuant's market-breadth model, returning to levels last seen in November 2025. This surge in dominance reflects aggressive capital concentration into Bitcoin as investors continue to prefer its relative strength while broader market confidence remains fragile. The momentum acceleration has reinforced Bitcoin's position as the primary driver of market liquidity, with ETF inflows keeping the rally alive and major altcoins following more selectively.
Despite Bitcoin's dominance, altcoins are showing early signs of recovery after months of sustained pressure, as reported by CryptoQuant. TOTAL3, which tracks the crypto market excluding Bitcoin and Ethereum, is up roughly 15% over the same period, showing the broader altcoin basket is no longer sliding at the same pace as Bitcoin. The key breadth signal comes from Binance-listed altcoins, where only 2.3% of tokens were trading above their 200-day moving average on February 6, but that share has now risen to 11.7%. This marks the first real break in the downtrend that had been in place since October 2025, with the 200-day moving average widely used as a long-term trend filter. Altcoin trading volume is also beginning to shift, with altcoin volume on Binance rising from 31% to 49% relative to combined BTC and ETH volume over the past two months, showing more capital moving back into speculative markets after a long period of caution.
Broader liquidity conditions are improving across the wider crypto market, with TOTAL3 stabilized between $744 billion and $755 billion, suggesting smaller-cap sectors are slowly regaining resilience after prolonged weakness. The recovery pattern matches typical early recovery phases where liquidity often returns first to Bitcoin because it has the deepest books, strongest ETF access, and the clearest institutional demand. However, altcoin participation remains fragmented as nearly nine out of ten Binance-listed altcoins remain below their 200-day moving average, indicating that sustainable altcoin rallies require broader liquidity expansion beyond isolated speculative bursts.
The recovery appears selective rather than broad across the altcoin market, with many tokens remaining deeply damaged while selected majors and stronger narratives begin to rebuild. A healthier rotation would need BTC to hold its breakout, dominance to stop accelerating, and altcoin breadth to keep expanding above the 200-day average. While some altcoins show strong performance, others like Cardano, Sui, and Hyperliquid posted moderate gains between 4% and 10%, signaling cautious positioning despite improving sentiment. The divergence between Bitcoin's dominance and altcoin participation remains important, as sustainable altcoin rallies depend on stronger liquidity expansion beyond isolated speculative bursts, with the current setup matching the wider altcoin season backdrop where selective recovery is the norm rather than broad-based rotation.
