Bitcoin News Today: Altcoins surge as Bitcoin dominance falls to 62%

Altcoins have surged in recent days, with Ethereum reaching $3,793 and Dogecoin jumping 33% in a week. This rally comes as Bitcoin's dominance in the market has slowed, prompting traders to rotate their investments into alternative cryptocurrencies. Ethereum's rise is driven by strong institutional interest, particularly in new Ethereum-based treasury products and ETF flows. The ETH to BTC ratio is also increasing, indicating that Ethereum is outperforming Bitcoin.

Dogecoin has seen a significant increase, rising over 9% in the last 24 hours and over 33% for the week, trading at around 27 cents. This surge is attributed to renewed interest in riskier assets. XRP has also made gains, priced around $3.55 with a 4% increase, while Solana jumped to $189. Cardano and BNB have also posted gains of over 3%. Bitcoin's dominance has fallen from 66% in June to just under 62%, suggesting a shift in trader sentiment towards altcoins.

Crypto analyst VirtualBacon cautions that altcoin seasons are typically short-lived, lasting only 1–2 months. He notes that altcoins usually rally when Bitcoin is breaking out, but once Bitcoin slows down or corrects, its dominance rises again, causing altcoin gains to quickly disappear. This trend highlights the volatility and risk associated with investing in altcoins during such periods.

The trend of capital flow from Bitcoin to altcoins is driven by growing interest in real-world asset tokenization. This includes turning things like treasury bonds, credit, and real estate into blockchain-based tokens. The total value of tokenized real-world assets has now crossed $24 billion, with big financial players like BlackRock and JPMorgan exploring this space. This shift towards real-world use cases is attracting more investors to altcoins.

Additionally, there is hope that new U.S. laws could make it easier for altcoins to grow. The GENIUS Act, which focuses on stablecoins and digital asset taxes, is still being discussed in Congress. Although it didn’t pass this week, its progress shows that clearer rules are coming, which could further boost the altcoin market. In summary, while Bitcoin remains strong, more traders are looking at Ethereum, Dogecoin, and real-world crypto projects as the next big opportunity.