Altcoin Season May Start Soon as Bitcoin Dominance Drops

An altcoin season, a period when alternative cryptocurrencies outperform the leading cryptocurrency, Bitcoin, is expected to begin earlier than initially anticipated. A pseudonymous analyst has highlighted several factors that suggest a buildup to this highly anticipated altcoin season. Although the previous altcoin season was expected to start in December 2024 and continue into January 2025, observers may need to prepare for the upcoming weeks.

The analyst noted that the shakeout phase, a period when investors exit the market, has come to an end. Despite broader criticism of President Donald Trump’s tariff hike and its negative impact on the crypto market, the analyst suggests that the President's economic pressure on the Federal Reserve could result in record-breaking market highs for both digital currencies and the traditional finance market.

Historically, Bitcoin dominance typically reaches a key 70% zone before peaking for every market cycle. However, with the macro bearish waves persisting, the analyst observed that Bitcoin still has room to run before passing the torch to altcoins. This move could kick off an altcoin bull rally, with capitals expected to rotate to altcoins, thereby fueling the rally.

The weekend has kicked off with the crypto market successfully shedding off weekly losses. Leading cryptocurrency Bitcoin sits above the $95,292 price levels—a critical position that places the asset on the path to $100,000. Meanwhile, leading altcoins XRP, ETH, and SOL, which have experienced a decent week, are closing with weekly gains of 6.87%, 13.67%, and 14.46%, respectively.

According to the analyst's forecast, the altcoin season could kick off as early as this week or the next. This prediction is based on the observation that the shakeout phase has ended and that Bitcoin still has room to run before altcoins take the lead. The analyst's stance on President Trump's tariff hike and its potential impact on the market adds an interesting dimension to the forecast, suggesting that economic pressure could lead to record-breaking market highs.

The current market conditions, with Bitcoin above $95,292 and leading altcoins showing weekly gains, support the analyst's prediction of an impending altcoin season. The rotation of capitals from Bitcoin to altcoins could fuel a bull rally for alternative cryptocurrencies, making this an exciting time for investors in the crypto market.