Bitcoin News Today: Altcoin Season Index Hits 41, Bitcoin Dominance Drops to 25%

The Altcoin Season Index has reached a significant milestone, hitting 41, its highest level since February 2025. This surge in the index is accompanied by a notable decline in Bitcoin's dominance, which has dropped to 25%, the lowest level since March of this year. This shift in market dynamics suggests a growing interest among investors in altcoins, as capital begins to rotate away from Bitcoin and into alternative cryptocurrencies.

Data from BlockchainCenter.net supports this trend, indicating that altcoin momentum is strengthening. As Bitcoin's performance lags, alternative assets are capturing increased attention from both retail and institutional investors. This transition phase in the broader crypto market is characterized by a growing appetite for altcoins, which are seen as offering unique opportunities for growth and innovation.

Market analysts are now predicting that altcoins may outperform in the short term, as historical cycles appear to be repeating. Technical data shows consistent breakouts across altcoin market caps, aligning with the idea that altcoins may be entering a fresh expansion phase. Analyst el_crypto shared a long-term chart of the TOTAL2 index, which tracks the market cap excluding Bitcoin. The structure of this chart mirrors past altcoin cycles from 2015–2017 and 2018–2021, including similar RSI movements. This consistency adds credibility to the notion that altcoins may be on the cusp of a significant rally.

The RSI breakout observed in the altcoin market mirrors past moments that led to explosive rallies in altcoins. These moves typically follow long consolidation periods, which tend to precede market-wide upward momentum. Additionally, altcoins are gaining strength as Ethereum’s market cap rises. Ethereum now ranks among the top 25 global assets by valuation, surpassing major companies. This positioning reflects increased legitimacy and mainstream relevance of crypto assets, further supporting the altcoin narrative.

Analyst Michaël van de Poppe suggests that the gold market may influence crypto in the short term. If gold breaks higher, it could place temporary pressure on altcoins. However, he believes the broader altcoin market is in its strongest bull cycle ever. Furthermore, CryptoGoos notes that BTC/ETH is now in a supply zone, while ETH/BTC shows renewed demand. This ratio movement favors Ethereum and supports the broader altcoin narrative. Market rotations typically begin with strength in ETH before spreading to mid- and low-cap assets, indicating a potential cascade of gains across the altcoin market.