Bitcoin News Today: Bitcoin Dominance Breaks Trendline as Altcoin Rally Looms

Generated by AI AgentCoin World
Friday, Aug 8, 2025 6:58 am ET1min read
BTC
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Aime RobotAime Summary

- Bitcoin's dominance fell below a key trendline on July 21, historically signaling potential altcoin rallies as institutional buying outpaces supply.

- Institutional investors accumulated 545,579 BTC YTD, creating a 5.6x supply-demand imbalance that reinforces Bitcoin's scarcity-driven price pressure.

- BTC/USD holds above $115,000 with 1.36% daily gains, while analysts await confirmation of sustained weakness before recommending leveraged positions.

- Galaxy Digital's Mike Novogratz and Tom Lee forecast $200,000-$250,000 BTC by year-end, citing strong market structure and potential Trump-era regulatory tailwinds.

Bitcoin's dominance within the cryptocurrency market has recently broken below a long-standing rising trendline, raising concerns among analysts that this could signal the start of an altcoin rally. The key support level, which had been intact for months, was breached on July 21, according to data from World of Charts [1]. This development has drawn attention due to its historical correlation with altcoin surges, as previous breakdowns in BTC dominance have preceded notable rallies in alternative cryptocurrencies [2]. Analysts are urging traders to await confirmation of a sustained downward trend before engaging in leveraged positions [3].

The broader market context shows a growing institutional interest in

Bitcoin
, with demand far outpacing new supply. According to Bitwise, institutional investors have accumulated over 545,579 BTC year-to-date, significantly more than the 97,082 BTC added to the network [4]. This imbalance highlights the scarcity of Bitcoin and suggests continued upward price pressure, provided the supply-demand gap widens further. The Bitwise CIO also noted that multiple countries are in talks to include Bitcoin in their sovereign reserve portfolios, signaling a potential shift in traditional monetary strategy [5].

Meanwhile, Bitcoin’s price remains above critical support levels. As of the latest data, the price stands at $116,591.76, reflecting a 1.36% daily gain. The asset is currently consolidating above $115,000 and testing resistance around $117,500 [6]. Market sentiment remains bullish, with

Galaxy Digital
CEO Mike Novogratz commenting on the potential impact of a new executive order from Trump. He suggested the move could attract a “monster pool of capital” into the crypto space [7].

Long-term optimism is also evident, with market analyst Tom Lee projecting that Bitcoin could reach between $200,000 and $250,000 by year-end, with potential for further growth to $1 million [8]. Lee’s forecast is based on strong market structure and momentum, underscoring continued confidence in the asset’s trajectory.

Source:

[1] title1 (https://coinmarketcap.com/community/articles/6895d3f7cb59d57bc2a17837/)