Bitcoin News Today: Bitcoin's Grip Slips as Altcoins Rewrite the Rules

Bitcoin dominance, a key metric representing the cryptocurrency’s market share relative to the total crypto market, has slipped below 60% for the first time since February 1, according to CoinDesk and CoinMarketCap. This drop signals a shift in investor behavior as capital increasingly rotates into altcoins, potentially indicating the early stages of an altcoin season. Bitcoin’s market capitalization currently stands at $2.39 trillion, while the overall cryptocurrency market has surged past $4 trillion, reaching a new all-time high [2].

The decline in Bitcoin dominance coincides with strong performance from altcoins, particularly Ethereum (ETH), which has surpassed $4,600. This has led to speculation that a broader altcoin season may be emerging. Analysts have noted historical correlations between falling Bitcoin dominance and periods of strong altcoin activity, with similar patterns seen during previous bull cycles such as the 2017 ICO boom and the 2020–2021 DeFi Summer [4].

Technical indicators also support a bearish momentum for Bitcoin. The Moving Average Convergence Divergence (MACD) has shown a bearish crossover, and the Relative Strength Index (RSI) for Bitcoin reads 41, below the neutral 50 level, suggesting further downward pressure. If Bitcoin continues its decline, it could potentially test key support levels at $111,980. Similarly, Ethereum has slipped below its critical support level at $4,232 and is currently trading near $4,132, with bears eyeing levels below $4,000 [6].

Coinbase, in its Q3 report, suggests that the current market dynamics are setting the stage for a full-scale altcoin season as early as September. The report notes that Bitcoin dominance has fallen from 65% in May 2025 to around 59% by August, indicating a gradual shift in capital away from Bitcoin and into altcoins. According to the report, an altcoin season is confirmed when at least 75% of the top 50 altcoins outperform Bitcoin over the past 90 days. While the CoinMarketCap Altseason Index remains in the low 40s, Coinbase anticipates that momentum and liquidity could push it above the 75 threshold by next month [5].

However, not all analysts are convinced that a traditional altcoin season is on the horizon. Some argue that the current market lacks the strong narratives that historically drove altcoin rallies, such as DeFi and NFTs. Analysts also highlight the presence of over 50,000 new tokens launched daily via platforms like Pump.Fun, which has diluted market gains and made it difficult for all altcoins to rise simultaneously. Instead, the current cycle is expected to be more selective, with only certain altcoins gaining traction based on utility, institutional interest, and macroeconomic conditions [4].

Institutional adoption has also reshaped the landscape of altcoin seasons. Spot Bitcoin and Ether exchange-traded funds have drawn significant capital inflows, with over $62 billion flowing into these funds since their launch in 2024. This has led to a more measured approach among institutional investors, who are now favoring compliance-ready assets with deeper liquidity over speculative altcoins. As a result, the current altcoin season is expected to differ from past cycles, with more mature and regulated projects gaining favor [4].

Despite these shifts, Bitcoin dominance remains a critical indicator for assessing market cycles and investor sentiment. While its limitations—such as the influence of stablecoins and the exclusion of on-chain activity—must be considered, it still offers valuable insights into capital flows and risk appetite. As the crypto market continues to evolve, Bitcoin dominance will remain a fundamental tool for investors seeking to navigate the dynamic and often volatile landscape of digital assets [1].

Source:

[1] What Is Bitcoin Dominance? A Complete 2025 Guide (https://financefeeds.com/bitcoin-dominance-explained-and-market-impact/)

[2] Bitcoin Dominance Falls Below 60% as Crypto, U.S. Stocks ... (https://www.coindesk.com/markets/2025/08/13/bitcoin-dominance-falls-below-60-as-crypto-u-s-stocks-hit-new-highs)

[3] Bitcoin Dominance (BTC.D) Chart (https://newhedge.io/bitcoin/bitcoin-dominance)

[4] Altcoin season 2025 is almost here… but the rules have ... (https://cointelegraph.com/magazine/altcoin-season-2025-altseason-here-rules-changed/)

[5] Coinbase Signals Altseason Season Ahead as ETH Gains ... (https://www.ccn.com/news/crypto/coinbase-altseason-prediction-september/)

[6] Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC ... (https://www.mitrade.com/insights/news/live-news/article-3-1053092-20250820)