Bitcoin News Today: Altcoin Season Looms as Bitcoin Dominance Drops to 60.49%

Bitcoin’s dominance in the cryptocurrency market is waning as capital flows into a broader range of digital assets. This shift has sparked discussions about the potential onset of an altcoin season, a period characterized by significant gains in alternative cryptocurrencies relative to Bitcoin. Ethereum, for instance, experienced a notable surge, rising from under $3,100 to over $3,750 in the first three weeks of July 2025. This rally was driven by anticipation around scaling upgrades and increasing market share, as well as a wave of liquidations and rising inflows into derivatives platforms.

XRP, another prominent altcoin, outperformed even more dramatically. On July 17, it breached its previous all-time high, touching $3.49 before retreating slightly. This new price discovery zone was aided by regulatory clarity in Asia and adoption by financial services platforms. XRP is currently trading at $3.61, reflecting its strong performance. Additionally, meme tokens like DOGE saw a nearly 40% climb in a two-week window, driven by retail enthusiasm and social media mentions, indicating that the rally was not limited to high-cap utility tokens alone.

The Altcoin Season Index, tracked by Blockchaincenter, stands at 59 as of July 21. This index measures the number of top 50 coins outperforming Bitcoin over the last 90 days. While the official threshold for an altcoin season is 75, the current level marks a steep climb from 28 in early June, suggesting a shift in relative strength. Similarly, the CMC Altcoin Season Index, which tracks the performance of 100 altcoins relative to Bitcoin for the past 90 days, is currently showing a reading of 56, further supporting the trend of altcoins gaining ground.

Bitcoin dominance dropped to 60.49% this week, its lowest level since March. This decline mirrors the expanding inflows into Ethereum, meme assets, and select infrastructure tokens. Historically, a drop in Bitcoin dominance below 50% has marked a transition toward broader risk appetite. Ethereum’s share of the total market cap rose 1.5% in July, while DeFi tokens like AAVE and UNI posted double-digit weekly gains. These shifts indicate that capital is exiting Bitcoin for potentially higher-yield altcoins when market sentiment turns risk-on, a behavior that is now repeating, albeit more selectively than in prior cycles.

Analysts are also noting a parallel theme beneath the meme hype: a rotation into infrastructure plays with perceived longevity. Chainlink (LINK), trading around $19, is attracting institutional interest again due to its cross-chain interoperability, which is seen as essential to upcoming real-world asset integrations and enterprise integrations. Cardano (ADA) has risen by more than 50% over the past month, buoyed by recent ecosystem launches and expanded stablecoin options. ADA’s sustained community development and regulatory alignment could be factors in its rebound. Avalanche (AVAX), also up 50% over the past 30 days, is being watched for subnetwork upgrades, with analysts arguing that these layer-1s are regaining traction as specialized tools for selective growth sectors.

A full altcoin season is not yet confirmed, but with rising participation, declining Bitcoin dominance, and renewed attention on utility-based tokens, the conditions are forming. If momentum continues, the coming weeks could mark a decisive phase in crypto’s internal capital rotation. Altcoin market cycles often move in phases, with early breakouts in majors like Ethereum and XRP followed by delayed gains in mid- and small-cap tokens. If historical patterns hold, the current broadening could indicate a more sustained altcoin-led period. However, volatility remains high, and sector rotations can reverse quickly. Investors should continue monitoring key indicators like dominance, volume flows, and relative strength to navigate what may be the early innings of an altcoin resurgence.