Bitcoin News Today: Bitcoin's Decline Unlocks Altcoin Power Play

Bitcoin dominance has shown signs of a significant decline, with analysts suggesting this could lead to one of the strongest altcoin seasons in history. According to EGRAG CRYPTO, if Bitcoin dominance drops below the 21-week EMA, it could fall to as low as 35%. Historical data supports this forecast, showing that each past drop below this level resulted in average declines of 43.34% [4]. This sharp reduction in Bitcoin's market share could signal a major shift in capital flows, favoring altcoins and potentially triggering widespread market reallocation [4].

Recent data reinforces this possibility, as Bitcoin dominance has fallen to 57.60%, a drop of 4.13% from the start of August. Analyst Ash Crypto notes that this decline marks a break from a two-year and eight-month trendline, raising expectations for a robust altcoin season [5]. Ethereum's dominance has increased by 2.8% in the past day, now accounting for 14.5% of the market, while the combined share of other altcoins rose by 0.4% [5]. These shifts suggest a broader market repositioning away from Bitcoin and toward other cryptocurrencies [5].

The decline in Bitcoin dominance is not the only indicator of a potential altcoin rally. Total altcoin market capitalization has risen from approximately $1.4 trillion at the end of July to nearly $1.8 trillion by late August, showing steady growth and investor interest in alternative assets [5]. This aligns with the views of several analysts, including Crypto Goos, who notes that the Altcoin Season Index has reached 71, nearing the 75 threshold that historically signals the start of an official altcoin season [5]. Additionally, data from CryptoQuant indicates shrinking altcoin balances on exchanges, a sign of investor accumulation that has historically preceded major altcoin rallies [5].

Kaspa (KAS), one of the top altcoins in the current cycle, is attracting attention due to its strong fundamentals and technical performance. Analyst LOVRIN highlights Kaspa's GHOSTDAG protocol, which enables one block per second and effectively reduces network congestion, a challenge that has long plagued Ethereum [1]. KAS has experienced an 18,000% increase over three years and now has a market cap of $2.32 billion, with recent trading data showing a price of $0.088400 per token [2]. LOVRIN's price prediction ranges from $3 to $6, with potential for further gains if adoption continues to grow [1]. The technical structure of Kaspa bears similarities to Polygon’s pre-breakout phase, where a quiet accumulation period led to a 12,500% price surge [1]. This pattern has led analysts to believe that Kaspa and other well-positioned altcoins may see a similar trajectory.

Beyond Kaspa, Ethereum remains a key player in the altcoin rally. While it continues to dominate the DeFi and smart contract space, recent price movements indicate strength. Analyst Ted notes that Ethereum has bounced from $4,466 and is approaching $4,772, suggesting potential for further gains [1]. A rally in Ethereum could provide a tailwind for altcoins like Kaspa, though KAS has enough fundamental strength to perform independently [1]. This interplay between Ethereum's momentum and altcoin performance could define the next phase of market dynamics [4].

As Bitcoin dominance continues to trend downward, market participants are closely watching for confirmation signals that could validate the onset of a major altcoin season. With altcoins showing increased market share and technical indicators aligning with historical patterns, the stage is set for a potential shift in the market landscape. Investors who closely monitor these developments may find opportunities to capitalize on emerging trends in the crypto space [4].

Source:

[1] Kaspa (KAS) Price Forecast 2025 — Hidden Altcoin Rising ... (https://crypto-economy.com/kaspa-kas-price-forecast-2025-hidden-altcoin-rising-before-ethereums-next-move/)

[2] KAS Coin Price (Live Kaspa Statistics) (https://delta.app/en/crypto/kaspa/)

[3] Kaspa Price Chart & Market Cap (https://coincodex.com/crypto/kaspa/)

[4] Bitcoin Dominance Could Drop to 35%, Analyst Warns (https://cryptodnes.bg/en/bitcoin-dominance-could-drop-to-35-analyst-warns/)

[5] Bitcoin Dominance Breaks Below 2-Year Trendline, Is ... (https://thecryptobasic.com/2025/08/25/bitcoin-dominance-breaks-below-2-year-trendline-is-altcoin-season-here/)