Bitcoin's Dominance Drops Below 50% as Altcoins Surge

Coin WorldMonday, Mar 3, 2025 10:08 pm ET

1min read

Bitcoin's dominance has slipped below 50%, sparking speculation about an impending altcoin season. This shift comes on the heels of U.S. President Trump's announcement of a "Crypto Strategic Reserve" that includes altcoins like Ripple (XRP), Solana (SOL), and Cardano (ADA).

The crypto market cap surged 8% to reclaim $3 trillion, with Bitcoin (BTC) jumping past $90K following Trump's confirmation of the Bitcoin Strategic Reserve. However, Bitcoin dominance (BTC.D) dropped from 55.4% to below 50%, indicating increased capital rotation into altcoins. Historically, such declines in BTC.D have preceded altcoin market expansions.

Trump's announcement triggered a sharp rally in XRP, ADA, and SOL, as investors repositioned their portfolios. Despite criticism that Bitcoin should be the sole asset in a strategic reserve, Trump clarified that Bitcoin and Ethereum would serve as the core holdings. Nevertheless, high-cap altcoins experienced significant volatility and capital inflows.

Bitcoin surged 9.44%, printing its longest green candlestick since the post-election rally. XRP gained 34.13%, while ADA posted a historic 72.15% single-day increase, reclaiming the $1 level. However, Bitcoin's dominance swiftly rebounded after its initial decline, standing at 61.44% at press time. XRP, ADA, SOL, and other high-cap altcoins retraced over 10%, failing to confirm resistance flips into support on higher timeframes.

Bitcoin remains above $90K, correcting only 2% from its intraday high. A decisive bullish breakout is yet to be confirmed, but profit-taking in high-cap altcoins could lead to renewed capital inflows into Bitcoin, as reflected in the rising BTC dominance.

The market remains divided following the executive approval of Strategic Reserves. Speculation intensifies around the inclusion of altcoins, with analysts debating whether it was a strategic liquidity maneuver or an attempt to influence market structure. Bitcoin dominance has increased by 1.75%, suggesting a potential shift in capital allocation. However, BTC remains exposed to volatility and must hold above the $88K support level in the coming days to

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