Bitcoin News Today: Bitcoin's Decline Could Spark Altcoin Revolution, Analyst Warns

Altcoins are expected to outperform Bitcoin in the upcoming 2025 cycle, according to recent forecasts by crypto analyst EGRAG CRYPTO. The prediction hinges on the potential decline of Bitcoin’s dominance, a metric that measures Bitcoin’s market capitalization as a share of the total cryptocurrency market. Historical patterns indicate that each time Bitcoin dominance closed below the 21-week EMA, it led to significant declines. Past drops in dominance averaged 43.34%, with the metric potentially falling to as low as 35% if history repeats. This scenario would signal the start of a significant altcoin season, marked by a reallocation of capital from Bitcoin into Ethereum, large-cap altcoins, and eventually smaller, high-risk tokens. EGRAG described such a shift as rare and transformative, suggesting it could lead to substantial market movements in the months ahead [1].

The Bitcoin dominance metric, while widely used, has notable limitations. It includes all cryptocurrencies in its calculations, regardless of their purpose or structure, which can distort the picture of Bitcoin’s true market position. For example, stablecoins, which are primarily designed as bridges between fiat and crypto, are factored into Bitcoin dominance despite not functioning as independent monetary systems. This inclusion inflates the total market cap, diluting Bitcoin’s share and potentially misrepresenting its influence among coins competing as decentralized money. Similarly, many ICO tokens and centralized projects are included in the metric despite differing fundamentally from Bitcoin’s decentralized model [2]. The recent Dencun upgrade in March 2024, which significantly lowered transaction fees for layer-2 scaling networks using Ethereum, has also contributed to a drop in Ethereum’s network fees and revenue. Despite Ethereum experiencing all-time high ETH prices in August 2025, its revenue dropped by 44%, raising concerns about the sustainability of the layer-1 smart contract platform [3].

The current market dynamics suggest that Bitcoin is nearing an inflection point where it could lose ground to Ethereum and altcoins. Traders are closely monitoring Bitcoin’s performance against its critical EMA levels, as breaking below these thresholds could trigger aggressive momentum across altcoins. Many of these altcoins are still well below their historical highs, offering potential for significant growth if the market shifts in their favor. EGRAG highlighted the historical correlation between Bitcoin dominance and the onset of altcoin seasons, with past cycles showing massive capital rotations from Bitcoin into other cryptocurrencies. If Bitcoin dominance falls to the projected levels, it could indicate a broader market trend favoring altcoins over Bitcoin, a scenario that has not occurred frequently in the past [1].

The implications of a declining Bitcoin dominance extend beyond market movements to broader financial and institutional interest in altcoins. Ethereum, for instance, has attracted significant attention from institutional investors in 2025, with companies exploring staking opportunities and yield generation through Ethereum’s smart contract platform. Advocacy firms like Ethealize have raised substantial capital to promote Ethereum to publicly traded companies, further boosting its profile. However, the recent drop in Ethereum’s network fees and revenue has sparked debate about the platform’s long-term viability. Critics argue that the decline indicates unsustainable fundamentals, while proponents view Ethereum as the backbone of future financial systems [3]. As the market evolves, the balance between Bitcoin’s dominance and the performance of altcoins will likely remain a focal point for investors and analysts alike.

For now, the data suggests that the market is in a phase of transition. With Bitcoin dominance still above the projected 35% threshold, the market is waiting for confirmation signals before a full-scale altcoin season can be declared. Traders and investors are advised to stay alert to developments in Bitcoin’s price movements and its performance against key technical indicators. The potential for a major shift in capital allocation remains, and those who are well-positioned may benefit from the anticipated market dynamics. As the year progresses, the interplay between Bitcoin and altcoins will continue to be a defining feature of the cryptocurrency landscape [1].

Source:

[1] Bitcoin Dominance Could Drop to 35%, Analyst Warns (https://cryptodnes.bg/en/bitcoin-dominance-could-drop-to-35-analyst-warns/)

[2] Bitcoin Dominance (BTC.D) Chart (https://newhedge.io/bitcoin/bitcoin-dominance)

[3] Ethereum revenue drops 44% in August amid ETH all-time high (https://cointelegraph.com/news/ethereum-revenue-drops-44-percent-august-all-time-high)