Bitcoin News Today: Bitcoin Dominance Drops 62.1% As Altcoins Gain Traction

The cryptocurrency market is currently undergoing a notable transformation as Bitcoin's dominance wanes, indicating a potential transition into the concluding phase of the bull run. Analysts and traders are closely observing these developments, with some predicting that a weakening US dollar could further bolster Bitcoin's price. Cryptocurrency analyst and trader Jason Pizzino has noted that the US dollar is likely to experience further downside, which he believes will benefit Bitcoin. Pizzino's analysis suggests that the current setup of the stock market, as reflected in the S&P 500 index, is another bullish catalyst for Bitcoin. He observes that the trend in the S&P 500 is upward, and when it breaks out of consolidation and hits new all-time highs, it often coincides with a strong performance from Bitcoin.

However, Pizzino also cautions that Bitcoin is entering the final stages of the bull market. He points out that conditions triggering a bearish reversal are already forming. One of the key factors contributing to this is the increasing number of companies adopting Bitcoin as a treasury asset. While this trend has led to stock price increases for these companies, it also introduces further leverage into the system, which can be risky as the cycle nears its end.

The weakening of Bitcoin's dominance is also evident in the rise of other cryptocurrencies, particularly Ethereum. Ethereum's increasing market share suggests a potential shift in the market dynamics, with traders anticipating a new altcoin cycle. This trend is supported by the Altcoin Season Index, which is nearing historical thresholds for full-scale altcoin rallies. As of July 2025, Bitcoin's market dominance has fallen to 62.1%, indicating a growing interest in alternative cryptocurrencies.

The current phase of the market is characterized by a period of price discovery, where the majority of Bitcoin's supply is held in profit. This allows for accumulation or distribution without a clear directional trend, providing a stable environment for investors to assess their positions. Despite a recent drop in Bitcoin's price after hitting an all-time high of $123,000, the macro trend remains bullish. Analysts predict that while a drop to $110,000 is possible, it does not necessarily signal the end of the bull run.

The resurgence of so-called "dinosaur coins" such as Ethereum Classic, Bitcoin Cash, and Dogecoin further highlights the diversification within the cryptocurrency market. These coins, which have been around for a significant period, are experiencing renewed interest, contributing to the overall market cap. The crypto market cap has hit $4 trillion, with the Altcoin Season Index crossing 75, signaling the start of a full-blown altcoin bull market.

In summary, the cryptocurrency market is in a transitional phase, with Bitcoin's dominance weakening and altcoins gaining traction. While the weakening US dollar and bullish stock market trends provide a favorable environment for Bitcoin, analysts warn of the potential risks associated with the final stages of the bull market. The rise of Ethereum and other altcoins suggests a shift in market dynamics, with investors closely monitoring these developments for potential opportunities.