Altcoins Surge 1,263% as Bitcoin Dominance Holds Near 64.5%

Crypto strategist Matthew Hyland noted on Friday that altcoins have been surging while Bitcoin dominance remains firm near 64.5%. He questioned what might happen if that number falls further—from 65% to, say, 45%.

Historically, a sharp drop in Bitcoin dominance is seen as a signal for an incoming altcoin season, as capital rotates into the broader market. But this time, altcoins are already surging—even without that shift. Tokens like MemeCore (M), Mog Coin (MOG), and Stellar (XLM) have posted weekly gains of 1,263%, 75%, and 67% respectively. Ethereum (ETH) is also up nearly 18% over the week, and the ETH/BTC ratio has risen by over 8%—a potential sign that altcoins are starting to outperform.

The market hasn’t fully flipped. CoinMarketCap’s Altcoin Season Index shows a reading of 29 out of 100, signaling the market is still in “Bitcoin Season.” But that may change soon. Analyst Michael van de Poppe suggested that the market is approaching what could be the “final easy and biggest bull ever” for altcoins. Market intelligence firm Santiment echoed that sentiment, reporting data that supports the early stages of a shift—so long as Bitcoin holds above $110,000.

While Bitcoin continues to set new records, altcoins are experiencing a quiet but significant rally, without significantly impacting Bitcoin's dominance. This phenomenon has caught the attention of analysts who predict an incoming altcoin boom. The technical indicators and institutional flows are aligning in favor of altcoins, suggesting that a move toward higher valuations is within reach. For instance, some analysts believe that XRP could reach $4 or even $5, indicating a strong bullish sentiment. Similarly, Sei (SEI) has extended its gains by nearly 8%, reaching around $0.326, after surging nearly 25% this week. This surge in altcoins is not just limited to a few coins; it is a broader trend across the altcoin market.

The recent breakout of Bitcoin, clearing $118K, has been seen as a regime shift by some traders. This shift is expected to lead to increased dispersion among altcoins, with several analysts predicting that the altcoin market cap could potentially reach the $10-16 trillion range. This prediction is based on the technical analysis suggesting that the market could be entering a phase of significant growth, often referred to as "Pump 2.0." This phase is characterized by a surge in the value of altcoins, driven by increased interest and investment in the cryptocurrency market.

Despite the slight declines in the cryptocurrency markets on Tuesday, with Bitcoin hovering near $108,209 and Ethereum around $2,554, analysts remain optimistic about the future of altcoins. The overall sentiment is that the current rally in altcoins is just the beginning of a larger trend, with many analysts predicting that the altcoin market will continue to grow in the coming months. This optimism is fueled by the increasing institutional interest in cryptocurrencies, as well as the growing acceptance of digital assets as a legitimate investment class.