Bitcoin News Today: Altcoin Market Cap Could Surge 100% as Bitcoin Dominance Drops

Bitcoin dominance, which measures the percentage of the total cryptocurrency market capitalization that Bitcoin holds, has been rapidly declining. This drop has confirmed a lower low, a significant technical indicator that often precedes what the crypto community refers to as “Altseason.” This phenomenon occurs when traders shift their investments from Bitcoin to alternative cryptocurrencies, or altcoins, in search of higher returns in more volatile assets.

Historically, such shifts in market dominance have been the precursor to periods where altcoins significantly outperform Bitcoin. The current decline in Bitcoin dominance suggests that traders are increasingly diversifying their portfolios into altcoins, indicating a potential Altseason. This trend is supported by the observation that Bitcoin’s relative strength in the market is weakening, as evidenced by the breakdown of the upward trend that had been in place for months.

Several analysts have noted bullish patterns in altcoins, further supporting the idea that an Altseason may be underway. For instance, trader Jelle identified a breakout from a highly bullish continuation cup-and-handle setup on the TOTAL3/USD weekly price chart. TOTAL3 represents the combined market capitalization of all cryptocurrencies excluding Bitcoin and Ether. A break above the neckline of this pattern at $1.1 trillion could potentially push TOTAL3 up by about 100% to $1.98 trillion, indicating a significant rally in the altcoin market.

Veteran trader Peter Brandt also observed a similar setup on TOTAL2, the combined market capitalization of all cryptocurrencies excluding Bitcoin. The measured target of this pattern is $2.78 trillion, suggesting a 97% rally in the total altcoin market cap. This analysis aligns with the sentiment that altcoins are entering a strong performance phase.

The recent performance of altcoins has been particularly noteworthy, with many displaying bullish patterns. Analyst Stockmoney Lizards observed that altcoins have posted their strongest performance against Bitcoin since late November 2024, breaking out of a multimonth downtrend. This shift is fueled by Ether’s 24% performance over the last seven days, indicating a capital rotation from Bitcoin as other cryptocurrencies play catch-up.

Michael van de Poppe, founder of MN Capital, noted that Ether is trading at $3,400, highlighting the rapid pace of market movements. He predicted that the next six months could be phenomenal for altcoins, further supporting the idea that an altcoin season is imminent. The decline in Bitcoin dominance has also been noted by several analysts, who suggest that Bitcoin’s market dominance has reached its peak. Popular crypto analyst Mikybull Crypto stated that Bitcoin dominance is “dumping” as it breaks below critical support levels provided by the 50-day and 100-day simple moving averages. Daan Crypto Trades, however, cautioned that it might be too early to confirm an altseason, as Bitcoin dominance still has a long way to go to confirm a larger turnaround.

The Altcoin Season Index, which measures the performance of the top 50 altcoins relative to Bitcoin, has climbed to 38 as of July 16, 2025. While this index has more than tripled since June 22, it is still far from the 75% needed for an official altcoin season. This suggests that while there is significant momentum in the altcoin market, it may still be too early to declare an official altseason. Investors and traders should conduct their own research and exercise caution when making investment decisions in this volatile market.