Bitcoin News Today: Bitcoin Dominance Breaks Historical Pattern as BTC Drops 36% in Fastest Correction of the Cycle

Bitcoin has now suffered its third 30%+ correction of the current cycle — but unlike previous downturns, Bitcoin dominance fell instead of rising, signaling that the largest cryptocurrency was hit harder than the broader market during the sell-off.BTC plunged to the $80,000 region late last week, marking a 36% drawdown from its October all-time high above $126,000. While widespread deleveraging gripped the crypto market, alternative cryptocurrencies showed unusual resilience relative to Bitcoin, directly impacting the dominance metric.Dominance Behavior Flips: Instead of Rising, BTC Share of the Market FellHistorically, Bitcoin dominance climbs sharply during market-wide risk-off events, as traders rotate out of altcoins and into BTC or stablecoins. That pattern held earlier in the year — until now.What typically happens:February–May “tariff tantrum” correction: Dominance surged from 58% to 65%2024 yen carry-trade unwind: Dominance climbed from 56% to 60%What happened this time:As Bitcoin fell from October highs to $80,000, dominance dropped from 61% to 58.5%Even after recovering above $90,000, dominance has only rebounded to just over 59%This is the opposite of how dominance usually behaves in a deep BTC correction.The takeaway:Bitcoin underperformed the broader crypto market during this decline — a rare break from established cycle behavior.A Faster, Sharper Bitcoin Drawdown Than Previous CyclesSpeed was another defining characteristic of this correction.The current drawdown lasted 47 days from peak to troughThe February–May “tariff tantrum” lasted 77 daysThe 2024 yen-driven correction stretched 146 daysThe unusually rapid decline amplified fear and contributed to atypical investor behavior, including capital rotating into selected altcoins and stablecoins rather than consolidating into Bitcoin.Why this matters heading into the cycle’s next phaseThis cycle's third major correction deviates from the first two in two key ways:Bitcoin dominance fell when it historically risesThe decline happened significantly faster than previous resetsThese factors raise a critical question for investors as Bitcoin approaches the tail end of its four-year cycle:Does falling dominance signal deeper structural weakness, or is it a temporary anomaly tied to leverage washouts and ETF-driven flows?With Bitcoin stabilizing above $90,000 and dominance only partially recovering, market participants are watching closely to determine whether this cycle’s pattern truly breaks — or whether BTC reasserts its position as macro conditions normalize.