Bitcoin News Today: Bitcoin dominance drops below 60% as Ethereum XRP surge on institutional adoption and regulatory shifts

Bitcoin’s market dominance has fallen below 60% for the first time in six months, signaling a potential shift in investor focus toward alternative cryptocurrencies [1]. This trend has been led by strong performances from Ethereum and XRP, both of which have shown significant gains amid growing institutional adoption and favorable regulatory developments.

Ethereum has surged nearly 30% in a week, outpacing Bitcoin’s 5% increase over the same period [1]. The rise is supported by robust inflows into spot Ethereum ETFs, which have accumulated $2.3 billion in net inflows, including a record $1 billion in a single day [1]. Institutional demand is also evident, with over $16.5 billion worth of Ethereum held in corporate treasuries [1]. Analysts attribute part of this momentum to the recent U.S. SEC decision exempting self-custodial staking from securities laws, which has allowed Digital Asset Treasuries to pass on staking rewards [1]. Some forecast Ethereum could exceed $8,000 by the end of 2026, though these are speculative targets with relatively low probability [1].

XRP has also seen a notable rebound, with expectations of regulatory clarity following the resolution of the SEC v. Ripple case contributing to its upward trend [1]. Ryan Lee of Bitget Research has set an upper target of $5.81 for XRP in 2025 and predicts the price could rise to nearly $9 by 2026 if adoption continues to grow [1].

The decline in Bitcoin’s dominance follows a historical pattern often associated with the onset of an “altcoin season,” a period in which investors rotate capital away from Bitcoin toward smaller-cap cryptocurrencies [1]. The Altcoin Season Index currently stands at 51, a neutral reading that suggests the market is in transition but has not yet reached the typical threshold of 75% of top 50 altcoins outperforming Bitcoin over 90 days [1]. Open interest in altcoin futures has hit an all-time high of $47 billion, indicating increased leverage and potential for volatility [1]. However, Bitcoin remains relatively stable, trading near $123,500 and showing subdued implied volatility compared to altcoins [1].

Analysts remain cautious, noting that while the market appears strong, it is currently priced for a favorable outcome regarding Federal Reserve rate cuts, which may not materialize as expected [1]. This over-optimism could create downside risk if macroeconomic conditions shift or if regulatory developments do not align with current expectations [1].

Source: [1] Altcoins open interest surges to new all-time high amid declining Bitcoin volatility (https://www.fxstreet.com/cryptocurrencies/news/altcoins-open-interest-surges-to-new-all-time-high-amid-declining-bitcoin-volatility-202508130150)