Bitcoin News Today: Altcoin Market Cap Surges 46% as Bitcoin Dominance Drops to 61.67%

The crypto market is experiencing a notable shift as the Altcoin bull market gains momentum. Bitcoin dominance, which measures Bitcoin’s market share relative to the entire crypto market, has fallen below the crucial 65% threshold. This decline is more than just a numerical change; it confirms a bearish divergence, indicating that altcoins are poised to outperform in the near term.

Historically, such divergences have signaled that while Bitcoin might consolidate or even pull back, capital is beginning to flow into smaller-cap assets. Traders and analysts interpret this as a strong indication that altcoins are set for a significant rally. This trend is supported by seasonal data from previous years, which shows that altcoins tend to surge between July and December, following initial Bitcoin-led rallies. This pattern is now unfolding again, backed by both technical signals and historical trends.

From Ethereum and Solana to newer DeFi and AI-related tokens, the market is setting up for substantial moves across the board. For investors, this period represents a crucial opportunity to maximize returns. Rebalancing portfolios to include more altcoins—particularly high-quality, fundamentally strong projects—can significantly improve potential gains during this cycle. However, with greater reward comes higher risk. Diversification and proper risk management are essential, especially when dealing with the volatile nature of altcoins. Keeping an eye on market sentiment, volume, and token-specific developments can help investors stay ahead of the curve.

Bitcoin's market dominance has decreased to 61.67%, indicating a potential shift towards altcoins as Ethereum, Litecoin, and others experience significant gains. This drop in dominance signals a risk-on environment, which historically has been bullish for Bitcoin itself. However, the current trend suggests that altcoins are gaining traction, with Ethereum rallying over 40% in the past 30 days. The altcoin market cap has surged over 46% in the past four weeks, further emphasizing the capital rotation towards these digital assets.

The altcoin market is preparing for a massive inflow as Bitcoin's latest pullback signals a shift in investor sentiment. Centralized exchanges are playing a crucial role in this capital rotation, facilitating the movement of funds from Bitcoin to altcoins. This trend is supported by the recent surge in the altcoin market cap, which has increased by over 46% in the past four weeks. The altcoin market is showing signs of a strong multi-month rally, with many altcoins turning green as Bitcoin's price remains relatively flat.

Cardano (ADA) is one of the altcoins showing strong breakout signals, with its price climbing towards $1. The crypto market is experiencing a change, with many altcoins rallying while Bitcoin's price remains stable. For this shift to continue, Bitcoin dominance needs to drop below a certain support level. Earlier in November, Bitcoin dominance started to fall, but the drop did not last, and dominance bounced back strongly from the 50-week moving average. That bounce held altcoins down for months. Now, once again, Bitcoin dominance is at an important point. If dominance starts falling from here, altcoins could have a clear path for a strong multi-month rally.

Among the altcoins, Cardano (ADA) is showing strong breakout possibilities, with the price currently around $0.85. What makes this move interesting is that ADA’s current setup closely matches moments from previous bull runs. For example, the risk score for ADA is currently in the low 40s, the same range seen when the price was just 10 to 20 cents during past cycles. But this time, ADA is much higher, showing how much stronger the market looks. On the monthly chart, Cardano has broken above a key moving average, something that has only happened three times in the past, each followed by major price increases. The MACD on the weekly chart has also turned green, mirroring the bullish setup seen in late 2020 before a big rally. In the short term, ADA is eyeing the $1.00 to $1.15 range as the next big target. If it pushes past that, the next zone is $1.20 to $1.25, known as the “bull market door.” Breaking above this could mean a full trend shift and the beginning of a new long-term rally.

In this bull run, three tokens are drawing attention. Among the top 3 altcoins, ADA, XRP, and Nexchain (NEX) stand out. Each brings a unique value proposition, making them attractive to investors. Ethereum's climb has also accelerated the capital rotation into altcoins, with the ETH/BTC ratio climbing to 0.0267 BTC, breaking a year-long trend. This shift in market dynamics suggests that the altcoin season is approaching, with Ethereum investors rallying behind the surge in altcoin prices. The altcoin market is poised for significant growth, with many altcoins showing strong breakout signals and the potential for a new long-term rally.