Bitcoin News Today: Bitcoin Dominance Dips, but Altcoin Season Unlikely-For Now

Bitcoin's dominance in the cryptocurrency market has dipped to 58.9% in November 2025, signaling a potential shift in capital toward alternative cryptocurrencies. However, analysts caution that the decline does not necessarily herald an "altcoin season," with many attributing the trend to broader market deleveraging rather than a rotation into riskier assets according to market observers. The Altcoin Season Index, a key metric for gauging market cycles, recently hit a monthly high of 47 but remains far from the 75 threshold typically associated with sustained altcoin outperformance according to financial data.

The drop in Bitcoin dominance coincides with a 16% decline in BTC's price over the past month, according to CoinDesk data. While a lower dominance rate often suggests investors are shifting funds into altcoins, cross-pair performance reveals mixed signals. Tokens like Ethereum (ETH), Cardano (ADA), and Solana (SOL) have underperformed BTC on a relative basis, while pairs such as XRP/BTC show limited strength according to market analysis. "The market is absorbing a leverage flush that began with October's liquidation," said Rohit Apte, Head of Markets at Hex Trust, noting that caution remains dominant.

On-chain data further complicates the narrative. Ethereum's ecosystem, while active, shows no signs of the congestion or fee spikes typically linked to altcoin cycles according to on-chain analysis. Base, a Layer 2 network, processes 19 million daily transactions, driven by Coinbase's tools, but other major chains like Optimism and Arbitrum remain stable without significant fee increases according to blockchain data. This suggests the market is neither in distress nor entering a speculative frenzy.

The Altcoin Season Index, which measures whether 75% of top 100 cryptocurrencies outperform Bitcoin over 90 days, currently stands at 23-a level consistent with Bitcoin dominance according to Bitcoin World analysis. CoinMarketCap analysts emphasize that readings below 25 historically indicate BTC leadership, though they acknowledge cycles can shift rapidly with regulatory or technological developments according to market commentary. Meanwhile, Bitcoin ETF outflows have exacerbated the decline, with $3.5 billion in redemptions in November, the worst monthly performance since the 2022 crypto crash according to Bloomberg reports.

Some market observers remain optimistic. Coinbase Institutional predicted altcoin season could begin in September 2025 as Bitcoin's dominance weakens and liquidity improves according to institutional forecasts. Historical parallels to 2017 and 2021 cycles suggest Ethereum, Litecoin, and Solana could outperform if the market stabilizes according to analysis of past cycles. However, analysts stress that a true altcoin rally requires BTC and ETH to consolidate into a firmer range first according to market experts.

For now, traders appear focused on reducing exposure rather than chasing momentum. As leverage continues to unwind, the market remains in a sideways drift, awaiting a catalyst to break the stalemate between Bitcoin's resilience and altcoins' potential.