Bitcoin News Today: Altcoins surge 35% as Bitcoin dominance drops 6.9%

Altcoins experienced a significant surge last week while Bitcoin (BTC) maintained its position near record levels, marking a shift in market leadership towards higher-beta tokens. Bitcoin reached an all-time high of $123,054, a 65% increase from its April low, before stabilizing in a sideways range between $116,000 and $120,000. As Bitcoin entered a phase of consolidation, its share of the total crypto market cap decreased by 6.9% following seven consecutive daily declines in the dominance index, the steepest decline since December 2023. Historically, such contractions in dominance without a concurrent sell-off in BTC have signaled the beginning of altcoin-led phases.

Large-cap tokens led the rally, with Ethereum (ETH) rising by 19.45% and XRP by 21.4% over the week. The market index excluding stablecoins and the top ten assets, referred to as the “Others” index, climbed by 35%, equating to approximately $85 billion. Solana (SOL) also outperformed, drawing liquidity from Bitcoin as traders sought greater upside. The breadth of the move indicates broader participation beyond early-cycle BTC accumulation, a pattern typical in mid-cycle expansions when investors raise their risk tolerance.

Despite losing relative share, Bitcoin still trades above the cost basis of 95% of coins in circulation. Long-term holders have shifted to net distribution, transferring coins to shorter-term wallets, ETFs, and retail entrants. The spot price now sits just below the short-term holder band near $120,000, a level that historically attracts profit-taking. The next statistical resistance lies near $136,000. This structure leaves Bitcoin fundamentally firm yet more reactive to dips, while altcoins capture incremental flows.

Market mechanics suggest a baton pass rather than a reversal. Bitcoin’s consolidation above realized cost maintains a supportive floor, but relative momentum rests with altcoins as capital rotates. Whether the rotation endures will rely on continued spot demand for Bitcoin and sustained liquidity in large-cap tokens. For now, performance dispersion defines the landscape, with altcoins setting the pace while Bitcoin digests earlier gains.