Bitcoin News Today: Altcoin Rally Gains Momentum as Bitcoin Dominance Dips Below 60%

The shifting landscape of Bitcoin dominance has triggered a notable surge in altcoin activity across the cryptocurrency market. As Bitcoin’s dominance index (BTC.D) stabilizes within a defined range, capital is increasingly flowing toward alternative cryptocurrencies, sparking renewed interest in assets such as Ethereum and XRP. This trend aligns with historical patterns observed by seasoned crypto traders, who note that altcoin bull runs often follow periods of consolidation in Bitcoin’s dominance [1].

Ethereum has emerged as a primary beneficiary of this capital shift. Following a $5 billion purchase announcement, ETH prices have climbed above the $4,000 level, with the ETHBTC pair recently closing above the 0.034 threshold—marking a potential catalyst for further upward movement [1]. Analysts, including Sykodelic_, have highlighted Ethereum’s chart as particularly bullish, noting that the asset could continue to rise before encountering signs of overheating. “The direction is up,” the analyst stated, emphasizing confidence in Ethereum’s trajectory ahead of a potential all-time high [1].

Bitcoin’s dominance has also seen a significant dip, with BTC.D currently below 60%. This decline suggests that Bitcoin is no longer the sole driver of crypto market growth, as smaller-cap altcoins benefit from increased liquidity and speculative interest. Swissblock noted that BTC.D is at a pivotal point, with the index testing a long-term ascending channel amid weakening momentum and declining trading volume. A break of key support levels could accelerate an altcoin bull run, a scenario not seen in over two years [1].

The broader market environment has also played a role in this dynamic. The total market capitalization of cryptocurrencies has climbed toward $4 trillion, with daily trading volume rising by 17% to $180 billion. Meanwhile, geopolitical tensions remain relatively subdued, with former U.S. President Donald Trump’s recent comments not exacerbating concerns regarding international conflicts, providing a conducive backdrop for market gains over the weekend [1].

Despite the positive momentum, some analysts caution against over-optimism. The altcoin market capitalization, tracked by the TOTAL2 index, has remained within a range of $1.34 trillion to $1.54 trillion since July, indicating limited room for a breakout before encountering key resistance [1]. On-chain data further suggests that altcoins are still facing selling pressure, and repeated attempts to break through these levels could lead to increased volatility.

Bitcoin’s recent price recovery to over $116,000 has also drawn attention, with some analysts forecasting a potential move toward $123,000. However, this optimism contrasts with the current altcoin dynamics, where Bitcoin’s resurgence could signal a temporary pause in the altcoin rally. A successful bounce from Bitcoin’s local support level would indicate a reassertion of its dominance, potentially redirecting capital back from altcoins to the leading cryptocurrency [1].

As the market navigates these shifting dynamics, traders are advised to exercise caution. While altcoins have shown strong performance in the short term, the lack of significant on-chain strength suggests that a sustainable rally may still be some time away. For now, the crypto market remains in a period of transition, with Bitcoin and altcoins in a delicate tug-of-war for capital and investor sentiment.

Source:

[1] [Why the Bitcoin Dominance chart may be warning traders of this shift](https://ambcrypto.com/why-the-bitcoin-dominance-chart-may-be-warning-traders-of-this-shift/)

[2] [Bitcoin News Today: U.S. Executive Orders Spur Crypto Market Rally, Regulatory Clarity Looms](https://www.ainvest.com/news/bitcoin-news-today-executive-orders-spur-crypto-market-rally-regulatory-clarity-looms-2508/)

[3] [Bitcoin Tops $116K as Bullish Signals Spur Confidence](https://www.coindesk.com/daybook-us/2025/08/07/bitcoin-tops-usd116k-as-bullish-signals-spur-confidence-crypto-daybook-americas)