Bitcoin News Today: Altcoin Surge as Bitcoin Dominance Drops 5.04%

Bitcoin's dominance in the cryptocurrency market has experienced a notable decline, falling from 66% to 60.96%. This shift has confirmed a bearish RSI divergence, leading to a surge in altcoin performance. Ethereum, in particular, has seen a significant boost, with a 25.6% weekly increase driven by zkEVM upgrades and growing interest in Ethereum ETFs. This has pushed the ETH/BTC ratio to 0.0318, indicating a strong rotation of capital away from Bitcoin and into altcoins.

The decline in Bitcoin's market share marks a reversal from its upward trend that began in January. Analysts attribute this change to increased capital inflows into altcoins, suggesting a potential shift in the market cycle. Historically, the second half of the year has been favorable for altcoins, and the current trends may set the stage for significant outperformance across the sector.

Stablecoin volumes have reached $364 billion, providing ample liquidity for altcoin trading. This surge in stablecoin activity is partly due to new regulatory clarity, which has boosted adoption, especially for USDC. Traders are increasingly using stablecoins to rotate capital between Bitcoin and altcoins, further fueling the altcoin bull market.

Ethereum's performance has been particularly impressive, with a 25.6% weekly gain. This surge is attributed to major zkEVM upgrades and rising institutional interest. Ethereum ETF assets under management have increased by 20% to $15.7 billion, and Chainlink has also seen a significant gain of 26.85% due to demand for real-world asset oracles. The ETH/BTC ratio is now at 0.0318, and a move above 0.035 would further indicate Ethereum's dominance.

The Altcoin Season Index, as tracked by CoinMarketCap, stands at 56 out of 100, indicating strong altcoin performance. This index, along with the decline in Bitcoin dominance, suggests a robust altcoin market. The recent breakdown below 64.81% in Bitcoin dominance confirms a new phase of sector rotation, with altcoins poised to continue their momentum throughout the rest of the year.

As capital rotates out of Bitcoin, the overall market cap share of Bitcoin is reducing, bringing more liquidity into altcoin markets. Ethereum upgrades, increasing stablecoin flows, and heightened levels of altcoin investment are now defining the market. Unless Bitcoin experiences a sudden reversal, altcoins are likely to maintain their strong performance.