The dynamics of the cryptocurrency market have shifted as Bitcoin dominance drops to its lowest level since January, signaling the rise of altcoins amidst an impending altseason. This week, Ethereum has been inching closer to its all-time high, further fueling the decline in Bitcoin’s market share.
Since late June, Bitcoin’s dominance has been on a downward trend, shedding 10% in the wake of Ether’s resurgence. This shift has reignited discussions about an altseason, typically anticipated when Bitcoin’s dominance plunges below the 50% mark.
Following the bear market of late 2022, Bitcoin’s market share had been in an uptrend, leaving many altcoins struggling to recover. While Bitcoin dominance briefly dipped below 55% in December 2024 during a crypto market rally post the US election, it quickly resumed its upward trajectory, as per TradingView data.
Altseason on the Horizon
The decline in Bitcoin dominance is being viewed as a significant indicator of an imminent altseason. Crypto research channel ‘Bull Theory’ highlighted, “Currently, BTC.D on the weekly chart shows clear weakness, and if it breaks down, we will see alts exploding randomly,” drawing parallels to previous altseasons witnessed in 2017 and 2021.
There is a growing sentiment among analysts that Bitcoin dominance could plummet to around 45% over the next six months, potentially leading to significant pumps in altcoins ranging from 10x to 50x.
While signals of altseason are becoming more apparent, CoinMarketCap’s altseason index remains relatively low at 37 out of 100, suggesting that the full-fledged altseason may not have arrived yet. In contrast, Blockchain Center’s altseason index has surged to 53 in the past week, aligning with the remarkable performance of Ether.
Altcoins Shine Bright
As Bitcoin holds steady around $119,350, altcoins have been stealing the spotlight in the market. Ethereum surged over 8% to reach $4,670, coming within 4.2% of its 2021 all-time high, showcasing its impressive growth over the past month.
Other altcoins have also made significant strides, with Solana climbing 12% towards $200, Cardano surging over 9% to $0.86, Chainlink rising 13% to $24.50, and Litecoin hitting a six-month high of $133 after an 11% gain.
The evolving landscape of the cryptocurrency market indicates a potential shift in investor sentiment towards altcoins, as Bitcoin dominance wanes, setting the stage for a vibrant altseason ahead.
