Bitcoin News Today: Bitcoin Dominance Falls to 60.7% as Altcoin Momentum Builds

Bitcoin's market dominance is currently trending lower, raising speculation about the potential onset of an "altseason," a period historically marked by strong outperformance of alternative cryptocurrencies over Bitcoin. The current dominance level stands at 60.7%, a decline from recent peaks, and this shift is drawing comparisons to the 2021 market cycle, when a similar drop preceded a broad altcoin rally [1]. Traders and analysts are watching closely, as a sustained move below the 60% threshold has historically signaled heightened risk appetite and increased capital flows into Ethereum and other altcoins [1].

The total cryptocurrency market cap is currently $3.76 trillion, with altcoins capturing a growing share of investor attention. Notably, Ethereum has returned 47.2% in the third quarter [1], while altcoin inflows to major exchanges like Binance have reached one-year highs, with over 45,000 altcoin deposits recorded in a single week [1]. This trend is further supported by a golden cross in the altcoin market cap, a technical indicator often seen as a precursor to sustained price uptrends [1].

Ethereum’s dominance has increased to 11.9%, and its on-chain activity reflects growing momentum in the altcoin space [1]. Analysts are particularly eyeing altcoins such as XRP, SEI, HBAR, SUI, and SOL, which are showing promising fundamentals and catalysts [3]. Meanwhile, Bitcoin dominance is currently near 62%, with further declines below 61.20% potentially triggering broader altcoin rallies [4]. On mid-term charts, the 60.65% support level has recently been tested, and further movement downward is seen as favorable for altcoin performance [5].

The Altcoin Season Index, while still below 75, has risen from 26 to 37 over the past month, indicating a gradual shift in investor sentiment toward altcoins [1]. Smaller-cap coins like LTC, POL, and CFX are displaying bullish patterns amid market consolidation [7], while some assets such as Ethena, Sky, and Curve DAO are moving independently despite Bitcoin’s dominance remaining above 60% [8].

Though a full-blown altseason has not yet materialized, the early conditions appear to be taking shape. Market participants are monitoring Bitcoin dominance levels, Ethereum’s potential breakout, and the performance of key altcoins to determine whether the next phase of the bull cycle is unfolding [1]. A drop below 60% could signal a shift in investor behavior, potentially leading to random 2x–3x surges in altcoins [1].

Source:

[1] Altcoins Gain Momentum as Bitcoin Dominance Drops – Coindoo (https://coindoo.com/altcoins-gain-momentum-as-bitcoin-dominance-drops/)

[2] Altseason Brewing, as Bitcoin Dominance Mirrors 2021 Crash – Coinpedia (https://coinpedia.org/price-analysis/altseason-brewing-as-bitcoin-dominance-mirrors-2021-crash/)

[3] Watch out for these 5 altcoins as 'Selective Altseason' Starts – Coinedition (https://coinedition.com/xrp-sol-sei-hbar-sui-selective-altseason-5-altcoins-to-watch/)

[4] Ethereum Breakout Signal: Bitcoin Dominance vs. ETH Momentum – BeInCrypto (https://beincrypto.com/ethereum-breakout-signal-bitcoin/)

[5] Market Cap BTC Dominance – TradingView (https://www.tradingview.com/symbols/BTC.D/ideas/)

[6] ETFs: Ethereum Leading the Charge – Binance (https://www.binance.com/en/square/post/27968344797522)

[7] Bullish Patterns Emerge in LTC, POL & CFX Prices – Coinpedia (https://coinpedia.org/price-analysis/bullish-patterns-emerge-in-ltc-pol-cfx-prices-as-crypto-market-consolidates-is-a-rally-brewing/)

[8] Altcoin Season Activity Shifts Toward Ethena, Sky, and Curve DAO – Cryptonews (https://cryptonews.com/news/altcoin-season-activity-shifts-toward-ethena-sky-and-curve-dao/)