$BTC ‌$ETH ‌## TLDR

Altcoins are **lagging Bitcoin**, per today’s CMC Altcoin Season Index reading of 16/100 (Bitcoin Season).

1. **BTC dominance 59.04% (−0.31 pts 24h)** and **CMC Altcoin Season Index 16/100** – Bitcoin retains control despite minor dominance dip.
2. **Privacy coins surge** – ZEC (+13% weekly) leads sector rotation amid regulatory debates.
3. **Liquidity divergence** – Spot volumes up 35% but derivatives open interest lags, favoring stablecoins/BTC.

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## Deep Dive
### 1. Bitcoin Dominance Holds Firm
BTC dominance dipped slightly to 59.04% (-0.31 pts in 24h) but remains near yearly highs, while the Altcoin Season Index flatlined at 16/100. This reflects persistent institutional flows into Bitcoin ETFs ($116.5B AUM) and risk-averse sentiment (Fear & Greed Index: 28).
**What this means:** Investors prefer Bitcoin’s liquidity and regulatory clarity during market uncertainty, limiting altcoin upside.

### 2. Privacy Coins Defy Broader Trend
Zcash (ZEC) surged 13% weekly, driven by shielded transaction adoption (4.9M ZEC in privacy pools) and Grayscale’s ZEC Trust growth (+228% AUM since October). However, Monero (XMR) fell -2.94%, showing sector fragmentation.
**What this means:** Niche narratives like privacy attract capital, but lack broad altcoin participation. Watch ZEC’s $520 resistance for sustained momentum.

Liquidity Split Limits Altcoin Fuel
Spot volumes rose 35% to $192.8B, but derivatives open interest fell -9.8% ($709B), with perpetuals funding rates turning negative. This suggests traders prefer direct exposure (spot) over leveraged altcoin bets.
**What this means:** Without leverage-driven speculation, altcoin rallies lack staying power.

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# Bitcoin Still the Safe Haven
Bitcoin’s dominance and the Altcoin Season Index confirm capital remains risk-averse, favoring BTC over alts. While privacy coins like ZEC show strength, they’re exceptions in a broader risk-off environment. Monitor **BTC dominance** and **ZEC shielded pool growth** for shifts in market structure.
*Could altcoins flip the script? Watch for derivatives open interest rebounds and ETF inflows beyond Bitcoin.*