Bitcoin News Today: Bitcoin Dominance Slips to 59%-61% as Altcoins Drop 17%-18.5% Amid Capital Rotation

Market participants are increasingly reallocating capital to alternative cryptocurrencies as Bitcoin’s dominance over the crypto market declines amid a recent price correction. Bitcoin’s market share, historically above 60%, has fluctuated between 59% and 61% in recent weeks, reflecting a broader shift in investor sentiment [1][4]. This trend aligns with historical patterns where Bitcoin’s reduced dominance often precedes heightened altcoin activity, though current dynamics remain complex due to macroeconomic uncertainties and institutional risk strategies [7].

The recent volatility in altcoins has underscored Bitcoin’s relative stability. For example, XRP fell 17% over two trading sessions as it breached the $3.00 level, while Dogecoin dropped 18.5% [6]. These declines temporarily pushed Bitcoin’s dominance above 60%, as investors retreated to the perceived safety of the largest cryptocurrency [3]. However, retail interest in altcoins has surged to record levels, signaling a potential but unconfirmed “altcoin season” [5]. Analysts note that while Bitcoin remains a stable benchmark, capital rotation into altcoins could drive stronger price movements in assets like Ethereum if the current consolidation persists [6].

The shift is driven by both institutional and retail investors seeking higher-growth opportunities in altcoins with strong fundamentals or innovative use cases. Projects such as Ethereum’s staking advancements and XRP’s institutional adoption are attracting attention from market makers [7]. The Bitget Shitcoin Index has also risen as Bitcoin’s dominance dipped below 75% for the first time since early 2025, indicating growing speculative activity in riskier assets [8]. Paul Howard, Director at Wincent, highlighted that Bitcoin’s role as a safe haven remains intact but warned that altcoin speculation could gain momentum during prolonged market consolidation [6].

Bitcoin’s price resilience contrasts with the volatility of altcoins. Despite a 2.3% drop to $117,142, Bitcoin has outperformed many altcoins during the correction, maintaining its position as a core institutional exposure benchmark [6]. However, the price decline has triggered liquidations of leveraged altcoin positions, exacerbating sell-offs in riskier assets [6].

The interplay between Bitcoin’s dominance and altcoin performance remains a key indicator for market trends. While historical data suggests that Bitcoin’s dominance falling below 60% often coincides with altcoin surges, current conditions are shaped by broader macroeconomic factors and risk management practices [7]. The market appears to be in a transitional phase, with Bitcoin acting as a stabilizing force amid heightened altcoin volatility.

Source:

[1] [Bitget] [https://www.bitget.com/news/detail/12560604879302]

[2] [Blockchain] [https://blockchain.news/news/bitcoin-btc-dominance-surges-market-shifts]

[3] [CoinDesk] [https://www.coindesk.com/markets/2025/07/23/sol-xrp-ton-post-heavy-losses-as-altcoin-season-ends-with-a-whimper]

[4] [CCN.com] [https://www.ccn.com/news/crypto/retail-interest-in-altcoins-hits-new-high-altseason-on-the-cards/]

[5] [Mitrade] [https://www.mitrade.com/insights/news/live-news/article-3-980807-20250723]

[6] [Unnamed Source, Analysis in Provided Text]

[7] [AInvest] [https://www.ainvest.com/news/bitcoin-news-today-bitget-shitcoin-index-rises-bitcoin-dominance-falls-59-61-altcoin-rotation-2507/]

[8] [Bitrue] [https://www.bitrue.com/blog/bitcoin-dominance-slips-altcoin-season-2025]