Bitcoin News Today: Bitcoin Edges Up 0.81% as Altcoin Momentum Wanes, Market Consolidates

Bitcoin edged higher on Tuesday as momentum in alternative cryptocurrencies waned, marking a shift in investor focus after a multi-day rally in smaller-cap digital assets. The largest cryptocurrency by market capitalization gained approximately 0.81% to $118,711.71, bucking the broader market trend, which declined 0.42%. Ether (ETH) and XRP retreated by 1.40% and 2.20%, respectively, signaling a cooldown following a surge that had driven the Coinmarketcap Altcoin Season Index to 56 over the prior week.

The index, which compares the 90-day price performance of the top 100 cryptocurrencies against Bitcoin, remained below the 50 threshold, indicating that the market had not yet entered a formal “altcoin season.” Bitcoin’s dominance—the proportion of total crypto market capitalization attributed to BTC—rose by 0.58% to 60.91% over 24 hours, reclaiming some of the share it had lost to altcoins. Only two of the top ten cryptocurrencies, Bitcoin and Solana (SOL), posted gains during the period, while others experienced modest declines after recent bullish runs.

Bitcoin’s price action reflected a cautious consolidation phase, trading within a $116,000–$120,000 range following a peak of $123,000 in early August. While the asset added 0.59% over the past week and 15.43% since mid-July, its market leadership faced challenges as capital flowed into smaller-cap projects. Ethereum, for example, surged 27% in the same week, while Solana’s price exceeded $200 for the first time since February. Technical indicators such as Solana’s Relative Strength Index (RSI) hit 80, a level historically associated with overbought conditions and potential short-term pullbacks.

Investor sentiment remained mixed. The market sentiment index stood at 72, near but below the “extreme greed” threshold, suggesting the market had not become overly speculative. Despite Bitcoin’s modest gains, Ethereum ETF inflows outpaced Bitcoin’s outflows in recent days, with $296 million in daily inflows reported for Ethereum products. This trend aligns with historical patterns where capital shifts from Bitcoin to altcoins during bullish cycles, though analysts emphasized the need for caution as technical indicators hinted at potential corrections.

The broader cryptocurrency market saw a 1.4% decline in total capitalization to $3.9 trillion over the past 24 hours, reflecting a temporary pause after rapid gains. Bitcoin’s role as a reserve asset appeared under pressure, with its dominance declining to a four-month low of 60.9%. Meanwhile, large holders of Ethereum increased transfers in recent days, suggesting profit-taking activity amid the bullish momentum. Upcoming upgrades to the Ethereum network, including the Fusaka update scheduled for November, could further influence investor behavior as the ecosystem evolves.

Looking ahead, Bitcoin’s ability to break above the $120,000 level will be a key barometer for renewed bullish sentiment. A sustained advance could signal a broader market recovery, while a deeper pullback might extend the consolidation phase. Investors are also closely monitoring the sustainability of altcoin inflows and the potential impact of regulatory developments, such as the proposed GENIUS Act, which aims to foster innovation in the crypto sector. For now, the market remains in a transitional phase, balancing Bitcoin’s stability with the growth potential of alternative cryptocurrencies.