Bitcoin Updates: Bitcoin Jumps 60%—Sign of Market Evolution or Monoculture Danger?

Bitcoin Approaches 60% Market Share as Altcoins Struggle

Bitcoin's share of the overall cryptocurrency market is nearing 60%, widening its gap over altcoins, which are finding it difficult to attract interest amid regulatory challenges and changing investor attitudes. This figure, representing Bitcoin’s portion of the total crypto market cap, signals a broader movement toward safer investments and increased caution among institutions, according to experts. With spot

ETFs marking their fourth straight week of net outflows—losing $1.2 billion—investors are showing a preference for Bitcoin’s comparative steadiness over the higher volatility of smaller tokens .

Regulatory scrutiny is deepening the divide. Bitmain, the leading manufacturer of Bitcoin mining equipment, is under investigation by U.S. authorities for potential national security concerns, fueling worries about the concentration of mining resources in China.

Corp., a significant U.S. mining company, relies on Bitmain’s latest ASIC technology, underscoring the industry’s dependence on the supplier. The investigation could disrupt supply lines and push American miners to look for other options, adding complexity to an already unpredictable sector .

At the same time, legislative changes are influencing how institutions engage with Bitcoin. The Bitcoin for America Act, introduced by Rep. Warren Davidson last November, would permit taxpayers to pay federal taxes using Bitcoin, directing funds into a Strategic Bitcoin Reserve. Supporters claim this could add as much as $14 trillion in economic value over 20 years by taking advantage of Bitcoin’s growth potential. The proposal also removes capital gains taxes on these payments, encouraging holders to transfer Bitcoin directly to the government instead of selling it to cover tax bills .

Market forces are increasingly favoring Bitcoin as global economic uncertainty continues. MSCI’s plan to exclude crypto treasury firms from major stock indices has drawn criticism from Bitcoin supporters, who are urging boycotts of JP Morgan and other financial giants. Strategy, a treasury company focused on Bitcoin, cautioned that such exclusions could force mass sell-offs, putting more pressure on altcoins. “Bitcoin isn’t just a passive asset—it’s a sophisticated financial instrument,” said Strategy’s founder Michael Saylor in response to the proposed changes

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When compared to traditional safe-haven assets, Bitcoin’s appeal is mixed. Campbell Harvey of Duke University found that gold still outperforms Bitcoin during times of geopolitical turmoil. Despite both assets being scarce and resistant to inflation, Bitcoin’s price swings and vulnerability to technological risks—like advances in quantum computing—limit its attractiveness during risk-averse periods. “Calling Bitcoin ‘digital gold’ oversimplifies the issue,” Harvey said, pointing out that gold’s established role in central bank reserves and its physical nature give it a lasting edge

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Altcoins continue to face significant challenges. Solana’s recent introduction of the Sunrise gateway, designed to integrate Monad tokens, has not reversed the broader trend of underperformance. In March 2025, the network’s monthly spot trading volume

but derivatives trading has since declined. “Institutions are focusing on Bitcoin yield products rather than fragmented altcoin opportunities,” said Nathan McCauley of Anchorage Digital, indicating a move toward Bitcoin-centric financial solutions