Bitcoin News Today: Bitcoin Dominance Drops Below 60% As Altcoins Surge

Bitcoin’s dominance in the cryptocurrency market has seen a significant decline, falling below 60% of the overall crypto market valuation. This shift marks the largest drop since the altcoin bubble of 2021 and indicates a potential change in investor sentiment and portfolio strategies. The decline in Bitcoin’s dominance coincides with a surge in interest for other cryptocurrencies such as Ethereum, Solana, and XRP, which are attracting both funds and attention.

While Bitcoin remains the flagship asset of the industry, its declining dominance suggests a broader diversification of the crypto market. Traders, institutional investors, and individual investors are increasingly moving funds across a wider range of assets. Rachel Lin, head of strategy at DeCryptoFund, noted in a client letter that this trend is a clear sign that investors are expanding beyond Bitcoin in search of higher returns.

Ethereum has been at the forefront of this surge, approaching $4,000 as wealth flows into its ecosystem. Ripple’s XRP and Solana have also witnessed significant rises, further pressuring Bitcoin’s relative market share. Altcoins now account for more than 40% of the global crypto market, a stark contrast to Bitcoin’s 70%+ dominance in 2022. The diminishing link between Bitcoin and altcoins is crucial, as historically, cryptocurrencies have followed Bitcoin’s lead, growing and falling together. However, this pattern appears to be changing.

Blockchain analyst Kevin Zhu highlighted that correlation metrics between Bitcoin and the top 50 altcoins are at their lowest since 2020. This decoupling suggests that a new market cycle may be beginning, where altcoins are no longer just shadows of Bitcoin but entities with their own momentum and utility. In technical terms, Bitcoin’s dominance has broken down from a rising wedge pattern—a negative structure that frequently precedes protracted market cycles. Chartists compare this to the early stages of the 2021 altcoin season, when dominance fell from 74% to under 42%, resulting in one of the most successful moments for cryptocurrency traders.

Crypto expert Ananda Krishnan noted that Bitcoin dominance losing this wedge structure is significant, historically signaling substantial rotations into altcoins. If dominance weakens further, we may see a recurrence of the multi-month rally. However, not all observers believe a full-fledged altseason has begun yet. Analysts at BeInCrypto noticed that just roughly 52% of the top 50 altcoins had outperformed Bitcoin in the last 90 days, falling shy of the 75% threshold that generally heralds an altcoin cycle.

Several external forces are also driving this change. In Japan, new political leadership is pushing for crypto-friendly tax reforms that may lower the capital gains tax on digital assets from 55% to 20%. This is likely to spark a flood of investment in Asia-Pacific markets, particularly in cryptocurrencies with strong regional traction. Meanwhile, the US market is still digesting the ramifications of recently approved crypto laws such as the GENIUS Act and the Anti-CBDC Act. These events have strengthened stablecoin frameworks while throwing doubt on government-controlled digital currencies, pushing more institutional players to decentralized altcoins instead.

Bitcoin’s dominance decline is more than just a statistical oddity; it’s a clear indicator of changing investment behavior. As Ethereum, Solana, XRP, and other altcoins gain popularity, the market is shifting again toward diversification and research outside Bitcoin. Whether this signals the start of a long-term altcoin season is dependent on both technical confirmation and broader market mood. However, the trend is clear: Bitcoin is no longer the only game in town.