Bitcoin News Today: Altcoins Gaining Momentum as Bitcoin Dominance Drops to 60.7%

The cryptocurrency market is showing signs of shifting focus from Bitcoin to alternative coins as Bitcoin’s dominance continues to decline. The total crypto market cap has reached $3.76 trillion, with 24-hour trading volume exceeding $125 billion. Bitcoin’s market dominance has dropped to 60.7%, down from recent peaks, while Ethereum has significantly outperformed it with a 47.2% return in Q3 compared to Bitcoin’s 7.1% [1]. This divergence in performance has led traders to draw comparisons with 2021, when a similar decline in Bitcoin dominance preceded a widespread altcoin rally [1].

CryptoQuant data highlights the growing interest in altcoins, noting that altcoin deposits on Binance have hit their highest level in nearly a year, surpassing 45,000 in a single week [1]. Additionally, the altcoin market cap has triggered a golden cross, a technical signal often associated with extended price uptrends [1]. The Altseason Index, though still below the 75 threshold, has climbed from 26 to 37 in the past month, indicating growing investor enthusiasm for alternative cryptocurrencies [1].

Ethereum’s dominance currently stands at 11.9%, and its on-chain momentum and performance suggest that altcoins are gradually gaining the upper hand. Analysts are keeping a close eye on key altcoins such as XRP, SEI, HBAR, SUI, and SOL, all of which are showing promising catalysts and could lead a potential "selective altseason" [3]. Bitcoin dominance is currently hovering around 62%, a critical pivot level. A sustained drop below 61.20% could open the door for a broader altcoin rally, while a rise might suppress Ethereum’s momentum [4].

On the mid-term chart, Bitcoin dominance recently retested the 60.65% support level. A continued decline below 60.43% is seen as favorable for altcoins [5]. This trend aligns with the broader market narrative that altcoins are gaining traction as institutional interest in Ethereum grows and more capital flows into Binance [6].

Despite the positive signals, not all altcoins have shown strong momentum. While Bitcoin’s recent dip to $112,000 did not trigger a broad altcoin surge, some smaller cryptocurrencies like LTC, POL, and CFX are showing bullish patterns amid a consolidating market [7]. The Altcoin Season Index remains stable, and certain assets, including Ethena, Sky, and Curve DAO, are demonstrating independent price movements despite Bitcoin's continued dominance above 60% [8].

Overall, while a full-fledged altseason has not yet materialized, the early conditions are taking shape. Market participants are closely watching Bitcoin dominance levels, Ethereum’s breakout potential, and the performance of key altcoins to gauge whether the next phase of the bull cycle is unfolding [1].

Source:

[1] Altcoins Gain Momentum as Bitcoin Dominance Drops – Coindoo (https://coindoo.com/altcoins-gain-momentum-as-bitcoin-dominance-drops/)

[2] Altseason Brewing, as Bitcoin Dominance Mirrors 2021 Crash – Coinpedia (https://coinpedia.org/price-analysis/altseason-brewing-as-bitcoin-dominance-mirrors-2021-crash/)

[3] Watch out for these 5 altcoins as 'Selective Altseason' Starts – Coinedition (https://coinedition.com/xrp-sol-sei-hbar-sui-selective-altseason-5-altcoins-to-watch/)

[4] Ethereum Breakout Signal: Bitcoin Dominance vs. ETH Momentum – BeInCrypto (https://beincrypto.com/ethereum-breakout-signal-bitcoin/)

[5] Market Cap BTC Dominance – TradingView (https://www.tradingview.com/symbols/BTC.D/ideas/)

[6] ETFs: Ethereum Leading the Charge – Binance (https://www.binance.com/en/square/post/27968344797522)

[7] Bullish Patterns Emerge in LTC, POL & CFX Prices – Coinpedia (https://coinpedia.org/price-analysis/bullish-patterns-emerge-in-ltc-pol-cfx-prices-as-crypto-market-consolidates-is-a-rally-brewing/)

[8] Altcoin Season Activity Shifts Toward Ethena, Sky, and Curve DAO – Cryptonews (https://cryptonews.com/news/altcoin-season-activity-shifts-toward-ethena-sky-and-curve-dao/)