Bitcoin's Dominance Surges to Four-Year High, Sparking Altcoin Season Speculation

Bitcoin's dominance has reached a four-year high, sparking speculation about the potential start of a new "alt season." According to cryptocurrency analyst Rekt Capital, Bitcoin's market dominance needs to exceed 70% to kickstart this new era for alternative cryptocurrencies.

Bitcoin's recent performance has been exceptional, with its market dominance reaching a 4-year high. However, the question remains: did Bitcoin achieve this dominance alone? The recent inflation and price correction of major altcoins played a critical role in Bitcoin's rise. Currently, Bitcoin's dominance stands at 61%, but it has reached as high as 64.3% this week, as confirmed by TradingView.

To increase its dominance, Bitcoin's price strength will largely depend on the market prospects of altcoins going forward. The last alt season ended in December 2024, with Bitcoin experiencing a dip of 55%. For a new alt season to begin, altcoins must gain another 16% using assets at the current level.

Analysts believe that altcoin revival is possible, but it may come at the expense of deeper corrections for some altcoins, such as ETH, Solana, Polka Dot, Binance 2, and TRON. A loss of 50 to 85% might be imminent for these altcoins, which would be an ideal scenario for a new alt season. This divergence will be easily captured by the relative strength index, which is published weekly.

If current trends continue, there will soon be a change to the chronic Bitcoin dominance, and the market will be able to see new higher peaks. As the market awaits the start of a new alt season, investors and traders alike will be watching Bitcoin's dominance closely to gauge the potential impact on the broader cryptocurrency market.