Bitcoin News Today: Bitcoin Dominance Drops 4.5% as Ethereum and XRP Gain Traction

Bitcoin's dominance in the cryptocurrency market has decreased by 4.5%, falling to 61.82%. This decline is driven by the strong performance of Ethereum and XRP, as well as a broader resurgence in the altcoin market. The drop in Bitcoin's market share has led to increased activity in altcoin pairs, with Ethereum and XRP gaining significant traction. This trend is reminiscent of previous market cycles, although the current landscape features a more diverse range of altcoins.

The recent decline in Bitcoin dominance is part of a broader trend that began in early July 2025. From a high above 65%, Bitcoin's market share has dropped to 61.82%, accompanied by a surge in trading volume to approximately $77.93 billion. This high level of trading activity indicates that capital is actively rotating from Bitcoin into altcoins, rather than passively rebalancing. Bearish candle formations in July further confirm strong selling pressure from Bitcoin to altcoin pairs, pushing Bitcoin dominance to its lowest level since mid-April.

Unlike previous altcoin runs, the current decline in Bitcoin dominance is largely attributed to the strength of Ethereum and XRP. These two assets have gained significant ground, absorbing a large portion of the rotating capital. In earlier cycles, fewer altcoins competed for dominance, allowing for larger individual gains. For instance, in early 2021, Bitcoin dominance fell from 74% to 40% within 140 days, leading to extraordinary gains for altcoins. However, the current environment includes many more altcoins, diluting the impact of individual assets. Despite this, the move is notable, especially as Ethereum and XRP continue to rise in both valuation and dominance contribution.

Historical patterns suggest that altcoin seasons typically unfold quickly, often within a few months. The current trend, while smaller, already shows a strong market response. If Bitcoin dominance falls below 60%, more altcoin strength may emerge. However, sharp moves in Bitcoin or external market events could reverse the trend. Overall, the decline in Bitcoin dominance has led to notable altcoin activity, supported by volume spikes and strong performance from Ethereum and XRP. The current trend shares similarities with past cycles but unfolds within a broader and faster-moving market outlook.

Several analysts have noted bullish patterns in altcoins, suggesting that an Altseason may be underway. A breakout from a highly bullish continuation cup-and-handle setup on the TOTAL3/USD weekly price chart could potentially push TOTAL3 up by about 100% to $1.98 trillion, indicating a significant rally in the altcoin market. Veteran trader Peter Brandt also observed a similar setup on TOTAL2, the combined market capitalization of all cryptocurrencies excluding Bitcoin. The measured target of this pattern is $2.78 trillion, suggesting a 97% rally in the total altcoin market cap. This analysis aligns with the sentiment that altcoins are entering a strong performance phase.

The recent performance of altcoins has been particularly noteworthy, with many displaying bullish patterns. Altcoins have posted their strongest performance against Bitcoin since late November 2024, breaking out of a multimonth downtrend. This shift is fueled by Ether’s 24% performance over the last seven days, indicating a capital rotation from Bitcoin as other cryptocurrencies play catch-up. The next six months could be phenomenal for altcoins, further supporting the idea that an altcoin season is imminent.

The decline in Bitcoin dominance has also been noted by several analysts, who suggest that Bitcoin’s market dominance has reached its peak. Bitcoin dominance is “dumping” as it breaks below critical support levels provided by the 50-day and 100-day simple moving averages. However, it might be too early to confirm an altseason, as Bitcoin dominance still has a long way to go to confirm a larger turnaround.

The Altcoin Season Index, which measures the performance of the top 50 altcoins relative to Bitcoin, has climbed to 38 as of July 16, 2025. While this index has more than tripled since June 22, it is still far from the 75% needed for an official altcoin season. This suggests that while there is significant momentum in the altcoin market, it may still be too early to declare an official altseason. Investors and traders should conduct their own research and exercise caution when making investment decisions in this volatile market.