Bitcoin News Today: "Bitcoin's Decline Could Trigger Historic Altcoin Surge, Experts Say"

Bitcoin dominance, a key metric measuring Bitcoin’s share of the total cryptocurrency market capitalization, fell to 58% as of late August 2025, signaling a potential shift in market dynamics toward altcoins. This decline has reignited discussions among analysts and traders about the possibility of an “altseason”—a period historically marked by strong performance in alternative cryptocurrencies relative to Bitcoin. Several analysts have pointed to technical indicators and past trends to suggest that altcoins could experience a significant rally in the coming months.

Crypto analyst EGRAG CRYPTO has made a bold prediction, suggesting that Bitcoin dominance could drop as low as 35% in the event of a major market shift, potentially triggering one of the strongest altseasons in history. Historical data supports this view, as past declines in Bitcoin dominance—especially when it fell below the 21-week EMA—have led to significant drops in Bitcoin’s market share. Previous cycles have seen dominance levels fall to 47.86%, 42%, and 42.17%, with an average decline of 43.34%. If the trend repeats, Bitcoin’s dominance could fall to the lower boundary of the linear regression channel, which is currently at 35% [1].

The decline in Bitcoin dominance has also been reflected in the performance of altcoins. The altcoin market cap is currently approaching resistance levels near $1.1 trillion, with a key support line at $933.71 billion. Analysts like Michaël van de Poppe, a prominent figure in the crypto space, have highlighted the possibility of a breakout that could mirror the Q4 2023 rally, during which select altcoins achieved gains of up to 10 times their value [3]. Van de Poppe has emphasized that a successful breakout would confirm a new phase of altcoin momentum and could lead to a substantial increase in the altcoin market cap, with some analysts setting a long-term target of $5 trillion—representing a 500% increase from current levels [4].

Technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) have also pointed to a bearish trend for Bitcoin dominance. The MACD has recently entered negative territory for the first time since the end of 2022, a sign that the downward trend in Bitcoin dominance is likely to persist [2]. Additionally, Bitcoin dominance has completed a five-wave decline on the weekly chart, indicating that the first portion of the correction may be over and a short-term bounce could occur before the trend resumes [2].

Despite short-term fluctuations, the broader trend remains bearish for Bitcoin dominance. The Altcoin Season Index, a metric tracking altcoin performance relative to Bitcoin, has shown improvement, suggesting that the market is shifting capital away from Bitcoin into altcoins. Ethereum, the second-largest cryptocurrency by market cap, has already reached a peak price of $4,870, while Bitcoin’s dominance continues to decline [4]. This shift in capital allocation is likely to benefit large-cap altcoins and, eventually, smaller tokens as the market rotates into a broader range of assets.

Analysts caution that while small-cap altcoins could see further short-term volatility, the overall trajectory for altcoins appears strong. If the altcoin market cap successfully breaks through its resistance levels, it could set the stage for a powerful rally in the fourth quarter of 2025. This scenario is supported by growing on-chain activity and increased trading volumes, which have historically preceded major altcoin surges. Investors and traders are closely monitoring key technical levels and market sentiment indicators to position themselves for potential opportunities in what could be one of the strongest altseasons in recent memory.

Source:

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

[2] Why 2025 Is Shaping Up as the Strongest Altcoin Season Yet (https://www.ccn.com/analysis/crypto/2025-strongest-altcoin-season-yet/)

[3] Altcoin Market Cap Near ATH Breakout in 2025 (https://blockchain.news/flashnews/altcoin-market-cap-near-ath-breakout-in-2025-micha-l-van-de-poppe-signals-potential-10x-altseason-after-q4-2023-example)

[4] Altcoin Market Cap Nears $1.1T Resistance, Analysts Predict 500% Surge (https://www.kucoin.com/news/flash/altcoin-market-cap-nears-1-1t-resistance-analysts-predict-500-surge)