Altcoin Dominance Rises as Bitcoin Dominance Drops 37%

Analysts have confirmed that altcoin dominance has reached its lowest point, indicating a potential start of what some are calling “Altseason 2025.” This shift is significant as it suggests a major capital rotation away from Bitcoin and into altcoins. Currently, Bitcoin dominance is hovering above 65%, and according to analysis prepared by Crypto Elites, this dominance could drop as much as 37%, potentially falling to between 42% and 45%.

Historical data supports this trend. In both 2017 and 2021, when Bitcoin dominance dropped over 45%, altcoins such as Ethereum and Solana experienced strong rallies. The current scenario mirrors these past cycles, with Bitcoin dominance testing a long-term resistance level. This setup has previously led to capital flowing away from Bitcoin and into other cryptocurrencies, suggesting a similar outcome this time around.

Javon Marks, a notable analyst, has observed bullish divergences forming across multiple altcoins, further supporting the trend. He explained that if Bitcoin dominance breaks below a key support level, the market could shift toward broader altcoin growth. This shift is already beginning to manifest, as evidenced by the rising Total Value Locked (TVL) in DeFi, which has reached over $117 billion, close to previous cycle highs. Meanwhile, altcoin prices remain below peak levels, indicating potential upside.

Ethereum’s recent strength, particularly in ETH/BTC trading pairs, signals rising investor interest in altcoins. Data shows Ethereum has gained 3.55% in the last 24 hours against Bitcoin, suggesting a possible rotation of capital into altcoins. Crypto analyst Danny noted that the current setup for altcoins mirrors the conditions seen in 2017 and 2021, adding that Altseason 2025 is starting now. Market observers are closely watching to determine whether this early momentum in altcoins will continue in the coming weeks.