Bitcoin News Today: Is Bitcoin's 60% Threshold the Key to Altcoin Fate?

Bitcoin’s market dominance has retreated to 55% from a cycle high of 62%, according to recent data, signaling a potential shift in capital allocation toward alternative cryptocurrencies [1]. This metric, which reflects Bitcoin’s market capitalization as a percentage of the total crypto market, is widely used to gauge investor sentiment between Bitcoin’s “safe haven” appeal and risk-on altcoin strategies [1]. The drop of 700 basis points from its peak suggests a favorable environment for altcoins, particularly in the fourth quarter as institutional and retail investors begin rotating into alternative assets.

Ethereum (ETH) and Solana (SOL) have already shown early signs of renewed interest, with both platforms benefiting from growing capital inflows. Notably, digital asset treasuries (DATs) are leading the charge, with multiple teams securing funding to acquire assets through publicly traded vehicles [1]. During the 2021/2022 market cycle, Bitcoin dominance fell below 40%, indicating that there is still substantial room for altcoin rallies should market conditions continue to favor risk assets.

A number of altcoins have recently posted significant gains amid Bitcoin’s relative stagnation and Ethereum’s 3% weekly decline. MemeCore (M) surged nearly 230% in the last seven days, while Story (IP) added 35%, holding above $8 support [2]. Pump.fun (PUMP) extended its rally by 7%, and Sky (SKY) climbed 15% to $0.0735, while Pol (POL) posted 14% weekly gains [2]. These movements suggest that capital is flowing into smaller and newer projects, especially those tied to meme coins or social narratives.

Technical indicators support these bullish trends. MemeCore’s RSI is currently at 87, suggesting a strong but potentially overbought position, while the MACD shows increasing bullish momentum [2]. Story Protocol’s IP is positioned to test resistance at $8.57, with RSI and MACD signaling continued upward pressure [2]. Pump.fun is on track to approach its all-time high of $0.005199, supported by both RSI and MACD. Sky Protocol’s SKY is consolidating but appears to be poised for a breakout above $0.07882, with support remaining solid at $0.06025 [2].

A key question remains whether these gains are driven by genuine on-chain demand or primarily by derivatives activity. While substantial institutional capital is entering the crypto space through digital asset treasuries and ETF products, it is still unclear whether this capital will translate into direct token purchases that sustain price appreciation [1]. If altcoins can maintain this momentum with real-world demand, the current market environment could support a broader-based crypto bull run.

Bitcoin dominance remains in a consolidation phase, currently hovering around 58.69%, according to TradingView [2]. If it remains below the 60% resistance level, altcoins are likely to continue gaining ground as capital rotates further into riskier assets [2]. However, a breakout above this level could signal a return of Bitcoin as the primary safe haven asset.

Source:

[1] The Block (https://www.theblock.co/post/369123/bitcoin-dominance-slides-to-55-opening-the-door-for-altcoin-rotation)

[2] crypto.news (https://crypto.news/altcoins-rally-m-ip-pump-sky-pol-bitcoin-dominance/)