Bitcoin News Today: Altcoin Rotation Ignites: Golden Cross Points to 2021-Style Surge

The crypto market is showing early signs of a potential altcoin-driven rally reminiscent of the 2021 “altseason,” according to analysts and traders closely monitoring technical indicators. The emergence of a “Golden Cross” in the OTHERS/BTC ratio—where the 50-day moving average crosses above the 200-day—has been cited as a bullish signal. This pattern historically preceded a significant outperformance of altcoins against Bitcoin, as seen in Ethereum's 2021 surge. The signal, noted by crypto analyst @rovercrc, suggests that traders are beginning to shift capital from Bitcoin to altcoins in search of higher returns.

Supporting this sentiment, Solana (SOL) has emerged as a new market leader, with dominance increasing as Ethereum (ETH) has shown relative weakness. SOL's recent 6% gain to resistance levels and its strong on-chain metrics, including rising transaction volumes and wallet activity, have drawn attention as a potential breakout candidate. Other altcoins, including XRP, ADA, SUI, and AVAX, are also exhibiting bullish reversal patterns, such as TBO Close Shorts and Bullish Divergences, reinforcing the idea that a broader rotation may be underway.

From a macroeconomic perspective, the Federal Reserve’s upcoming rate decision in mid-September is a critical factor. Recent labor market data, including a weaker-than-expected ADP jobs report and rising jobless claims, has pushed market expectations for rate cuts to near certainty. With inflation showing signs of slowing and labor market conditions weakening, the Fed may pivot toward accommodative monetary policy, which historically has been favorable for risk assets, including cryptocurrencies. A 98% probability of a September rate cut, according to current market pricing, has further fueled speculation that crypto could benefit from a broader financial market rally.

Meanwhile, geopolitical and regulatory developments continue to shape the crypto landscape. The Trump administration’s pro-crypto stance has drawn both support and criticism. World Liberty Financial’s newly launched WLFI token, which grants governance rights to its holders, has boosted the Trump family’s paper wealth to an estimated $5 billion. However, the token’s initial price volatility, dropping nearly 50% in its first two days of trading, highlights the risks associated with speculative crypto assets. The administration has dismissed concerns about potential conflicts of interest, emphasizing its commitment to fostering a more hands-off regulatory environment for the crypto sector.

The broader market has also responded positively to recent Bitcoin (BTC) price movements. BTC closed above short-term resistance levels, triggering a broad-based market lift despite remaining in a bearish consolidation phase. The optimism is further reinforced by on-chain metrics, including a potential crossover in the On-Balance Volume (OBV) indicator, which could signal a shift in market sentiment. While Ethereum has struggled to follow through, the divergence in strength between BTC and altcoins suggests that capital is beginning to rotate into other crypto assets, particularly those with strong fundamentals and bullish technical setups.

Analysts caution, however, that the current rally should be viewed with a degree of caution. The market remains sensitive to macroeconomic developments and regulatory shifts. The upcoming September FOMC meeting will be a key test for whether the anticipated altcoin rotation can gain sustained momentum. If macroeconomic conditions align with the technical signals, the fourth quarter could witness a significant reacceleration in altcoin performance, mirroring the dynamics of the 2021 bull market. Traders and investors are advised to monitor volume, price breakouts, and cross-market correlations as they position for potential opportunities in the evolving crypto landscape.

Source:

[1] Trump and sons' stake in crypto firm worth $5bn (https://www.bbc.com/news/articles/ckgjgyyqgvyo)

[2] Trump is primed to cash in on the crypto gold rush he's ... (https://www.cnn.com/2025/09/03/politics/crypto-trump-bitcoin-wlfi-stablecoin-analysis)

[3] New crypto token boosts Trump family's wealth by $5 billion (https://www.cbsnews.com/news/trump-wlfi-world-liberty-financial-crypto-wealth/)

[4] Altcoin Rotation Alert 2025: OTHERS/BTC Golden Cross emerges after ETH/BTC Signal — What It Means for BTC, ETH (https://blockchain.news/flashnews/altcoin-rotation-alert-2025-others-btc-golden-cross-emerges-after-eth-btc-signal-what-it-means-for-btc-eth)

[5] BTC breakout lifts market, SOL takes the lead while reversals emerge across alts (https://www.kitco.com/opinion/2025-09-03/btc-breakout-lifts-market-sol-takes-lead-while-reversals-emerge-across-alts)

[6] Crypto Analyst: Altcoin Charts Flash Rare 2021-Style Bottoming Pattern (https://www.mitrade.com/insights/news/live-news/article-3-1092091-20250903)