Bitcoin News Today: Altcoins Surge as Bitcoin Market Dominance Hits 12-Day Low of 57.8%

Altcoins such as Dogecoin and XRP are gaining traction as Bitcoin’s dominance in the cryptocurrency market dips to a 12-day low of 57.8%, according to data from CoinGecko [1]. This shift marks a potential transition in market sentiment, with investors reallocating capital toward alternative digital assets. XRP, linked to Ripple, rose 7.5% to $3.29, while Dogecoin climbed 6.2% to $0.22 [1]. Ethereum, meanwhile, surpassed $4,000 for the first time since December [1], signaling renewed confidence in the broader altcoin ecosystem.

Bitcoin’s market capitalization share has declined from 61.3% a week ago, reflecting a pattern that has repeated in prior market cycles [1]. Historically, Bitcoin’s price peaks have often been followed by a period of outperformance in altcoins—commonly referred to as an “altcoin season.” However, Gerry O’Shea, head of global markets insights at crypto asset manager Hashdex, suggests the next altcoin season may not mirror previous cycles due to structural changes such as ETFs in the U.S. and increased corporate buying [1].

O’Shea noted that institutional investors are now playing a stabilizing role in the Bitcoin market, which could reduce the volatility seen in earlier cycles. At the same time, he highlighted that regulatory progress in the U.S. and the rise of stablecoin legislation are shifting investor preferences toward utility-driven projects rather than speculative assets like NFTs or meme coins [1]. Smart contract platforms such as Ethereum and Solana are benefiting from this trend, as they provide essential infrastructure for stablecoins and decentralized applications.

Bitcoin’s price hovered around $116,000 on Friday, up 0.1% from the previous day [1], and has risen 96% over the past year. While the asset has shown resilience despite a $9 billion Bitcoin sale by Galaxy Digital on behalf of a Satoshi-era investor, analysts remain cautious. O’Shea said Bitcoin’s falling dominance “may persist for a while,” but emphasized that the asset’s long-term prospects remain strong due to institutional adoption [1].

The broader crypto market has seen a 3% increase in market capitalization, now valued at $3.9 trillion, with altcoins accounting for a growing share of that value [1]. As Bitcoin consolidates and altcoin activity picks up, investors are increasingly looking beyond the dominant asset to capitalize on emerging opportunities. The current market dynamics suggest a diversification of risk and strategy, as altcoins continue to outperform in what many see as the early stages of a new market cycle.

Source:

[1] Dogecoin, XRP Lead Altcoins as Bitcoin Dominance Falls, Decrypt, https://decrypt.co/334343/dogecoin-xrp-lead-altcoins-bitcoin-dominance-falls