Bitcoin’s surge accelerates extinction of altcoins and puts their future in doubt

In 2025, bitcoin is hitting record highs, fueled by exchange-traded fund (ETF) approvals, optimism around favorable regulation, and growing interest from big investors. The US President’s strong support for the crypto industry, along with his family’s involvement in bitcoin mining, has further boosted optimism around the flagship cryptocurrency. But behind this positive momentum, the altcoin market is in crisis. Every cryptocurrency except bitcoin and stablecoins has taken a massive hit, losing over $300 billion in market cap since the start of the year.

Bloomberg notes that the decline was primarily driven by capital rotation, as investors increasingly favor bitcoin, which now accounts for over 64% of the total crypto market. Meanwhile, regulators and major banks are actively adopting stablecoins, driving their market capitalization up by $47 billion.

Altcoins, on the other hand, are losing investor interest despite their post-US election rally. For instance, the MarketVector index, which tracks less popular cryptocurrencies, has dropped nearly 50% after a brief surge. Analysts at Zodia Markets warn that most altcoins could eventually vanish altogether, having never achieved practical utility or real value.