Bitcoin Rally Leaves Altcoins Behind: Drivers and Market Impact

Bitcoin is trading near $79,000, up roughly 24% over the past week and delivering its strongest run since 2023.

Bitcoin’s Solo Market Domination

■Bitcoin dominance climbed to 61% early in the week before easing back to around 59%.

■The Bitcoin dominance metric clearly shows altcoins lagging behind the flagship asset.

Altcoin Performance: Total2 and Total3 Dissection

■Ethereum surged about 30%, breaking $2,500.

■Total3 (market without Bitcoin and Ethereum) sits near $753 billion, down on a weekly basis.

■Total2 (the full altcoin market) hovers around $1.05 trillion, a modest retreat from the $1 trillion peak.

Macro Catalysts: US Treasury Bond Buy‑backs and Political Moves

■The US Treasury announced a boost in long‑bond buy‑backs to $4 billion per operation (up from $2 billion) effective Sept 9.

■The policy weakened the dollar and steered investors toward Bitcoin as an inflation hedge.

■President Donald Trump met crypto executives at the White House two days later, urging Congress to pass the Clarity Act.

Short‑Squeeze Dynamics and Liquidity Pressure

■When Bitcoin breached $70,000, short sellers were forced to cover, triggering a classic short‑squeeze.

■Bitget Wallet analyst Lacie Zhang estimates more than $4 billion in crypto shorts were liquidated over a two‑to‑three‑day window.

Near‑Term Targets and Scenario Outlook

■Sustaining a break above $80,000 could open a path toward the $82,000‑$87,000 corridor.

■The $75,000‑$76,000 zone is expected to act as the primary pull‑back and liquidity‑absorption area.

■The Clarity Act returns to the Senate agenda in mid‑September, and regulatory clarity could further boost institutional inflows.

Deniz Arel – Director of Crypto Regulation & Compliance

Bitcoin’s robust rally is fueled by more than just short‑covering; the Treasury’s bond‑buy‑back program and high‑level political signaling have reshaped risk perception, positioning crypto assets alongside traditional inflation hedges. Yet, the Bitcoin dominance staying above the 60% mark underscores continued pressure on the altcoin ecosystem. Institutional appetite will hinge on regulatory certainty—particularly the passage of the Clarity Act—which would cement Bitcoin’s “safe‑haven” narrative while altcoins await a clearer macro‑economic and regulatory catalyst to reignite momentum. Expect heightened volatility in the coming quarter, with liquidity swings affecting both Bitcoin and the broader altcoin market.