Bitcoin News Today: Bitcoin's Fall Unmasks Altcoin Rise in Shifting Crypto Power Play

Altcoins are experiencing a surge in relative strength amid continued weakness in Bitcoin, as the cryptocurrency market shifts toward an environment where Bitcoin's dominance appears to be waning. Bitcoin's price has fallen below $112,000, with corporate purchases and index inclusions failing to provide sufficient support against a broader sell-off. The recent $2.59 billion BTC liquidation by a long-term holder triggered a sharp decline in Bitcoin's price, exposing the market to extended bearish momentum. This move has led to a drop in Bitcoin’s dominance, currently at 57.6%, from a peak of 66% earlier this year [1].

The decline in Bitcoin’s dominance is being driven by a combination of factors, including whale selling, ETF outflows, and the continued accumulation of Ethereum and other altcoins by institutional players. For instance, Japanese firm Metaplanet recently announced the purchase of an additional 103 BTC, bringing its total holdings to nearly 18,991 BTC. This move, alongside other corporate treasury initiatives, reflects a growing trend of institutional adoption of Bitcoin, but it has not been enough to counterbalance the selling pressure [2].

Ethereum has emerged as a key beneficiary of this shift, with its price surging approximately 70% since June and the ETH/BTC ratio hitting a 2025 high. The altcoin market cap has grown from $1.4 trillion to nearly $1.8 trillion in the past month, signaling a broader rotation of capital toward altcoins [3]. Analysts have noted that a drop in Bitcoin dominance below the 50% mark could be a positive sign for altcoins, as it historically aligns with the onset of a full-scale altcoin season [4].

Technical indicators are also flashing bearish signals for Bitcoin. The price has slipped below the Ichimoku Cloud and the 200-day EMA, with the Relative Strength Index (RSI) currently below the 50 level, suggesting that selling pressure remains strong. Meanwhile, Ethereum is showing signs of resilience, trading above key support levels and demonstrating strong on-chain activity [5]. Institutional flows have turned negative, with spot Bitcoin ETFs recording $1.17 billion in outflows last week, further exacerbating the bearish sentiment [6].

Analysts warn that if Bitcoin fails to reclaim resistance at $116,000 and remains below the $110,800–$112,000 support zone, a deeper correction toward $108,000 or even $103,000 is possible. Conversely, if Ethereum and other altcoins continue to outperform, Bitcoin dominance could fall further, potentially to as low as 35% in the coming months, according to some forecasts [7]. This scenario would likely trigger a significant shift in market dynamics, with altcoins potentially outpacing Bitcoin in terms of both price and volume.

The current market environment suggests that investors are reallocating capital toward alternative cryptocurrencies as Bitcoin’s dominance weakens. This trend is supported by growing corporate adoption of Bitcoin, regulatory developments, and the broader macroeconomic landscape, including expectations of interest rate cuts from the Federal Reserve. While Bitcoin remains the largest cryptocurrency by market capitalization, the increasing relative strength of altcoins indicates that the market may be entering a new phase where diversification into alternative assets is gaining traction [8].

Source:

[1] Bitcoin Price Drops Below $112000 As Metaplanet Announces To Buy $11.7M Worth Of Bitcoin (https://bitcoinmagazine.com/markets/bitcoin-price-drops-below-112000-as-metaplanet-announces-to-buy-11-7m-worth-of-bitcoin)

[2] Bitcoin (BTC) Price Collapse to $111K Signals Trouble (https://www.ccn.com/analysis/crypto/bitcoin-price-collapse-btc-signals-trouble-crypto-recovery-uncertain/)

[3] Ethereum Price Pulls Back Hard, Bitcoin Crash Fuels Bearish Wave (https://cryptorank.io/news/feed/c3b83-ethereum-price-pulls-back-4550)

[4] Bitcoin Dominance Could Drop to 35%, Analyst Warns (https://cryptodnes.bg/en/bitcoin-dominance-could-drop-to-35-analyst-warns/)

[5] Bitcoin Struggles as Whale Selling Overshadows Fed Rate Cut Optimism (https://bravenewcoin.com/insights/bitcoin-btc-price-today-bitcoin-struggles-as-whale-selling-overshadows-fed-rate-cut-optimism)

[6] Bitcoin Dominance – What it is and How it Affects Altcoins (https://www.tokenmetrics.com/blog/bitcoin-dominance)

[7] Bitcoin Dominance Breaks Below 2-Year Trendline, Is Altcoin Season Here? (https://thecryptobasic.com/2025/08/25/bitcoin-dominance-breaks-below-2-year-trendline-is-altcoin-season-here/)