Bitcoin News Today: Ethereum Leads Altcoin Surge as Bitcoin Stability Fuels 48% Market Momentum

Bitcoin has maintained stability near $120,500, demonstrating strength that allows Ethereum to absorb capital and initiate a broader market rotation. This stability is crucial for the potential onset of an altseason, as it provides the necessary foundation for altcoins to gain traction. Algotrend has confirmed Ethereum’s growing momentum as Bitcoin’s dominance wanes, positioning ETH as the primary driver of current market activity.

Altcoin impulse has surged to 48%, indicating broad participation across the market. This momentum is fueled by narratives such as liquid staking and rising interest in Layer 2 and mid-cap assets. The crypto market is exhibiting early signs of an altseason, with structural signals aligning across Bitcoin, Ethereum, and mid-cap assets. A new phase of capital rotation appears to be underway, driven by Bitcoin’s stability and Ethereum’s leadership.

Bitcoin’s resilience is pivotal for altcoin expansion. Without Bitcoin’s stability, there would be no altseason, as BTC acts as the oxygen of the altcoin market. With BTC no longer dominating capital inflows and not collapsing, it enables liquidity to rotate into other assets. This trend confirms the rotation thesis, which typically begins when Bitcoin cools off and other layers of the ecosystem begin to rise.

Ethereum is emerging as the next focal point of capital flow. The cycle is entering a new phase where Bitcoin stabilizes, and Ethereum becomes the next beneficiary. This leadership transition from Bitcoin to Ethereum is a recurring pattern before major altcoin rallies. ETH’s growing dominance and relative strength over BTC are pushing market sentiment toward mid-caps and narrative-driven assets.

Beyond Ethereum, large and mid-cap altcoins are beginning to react. Nearly half of the top 100 altcoins are gaining positive momentum, indicating that the move is not limited to a few tokens but is spread across multiple sectors. TOTAL3, which tracks the market cap of all crypto assets excluding BTC and ETH, is now aligned with this impulse. The correlation between aggregated impulse and TOTAL3 suggests that altcoins have crossed a significant threshold, confirming a wider market revival.

The mean reversion principle is also at play. As the market cools from its BTC-led rally, traders are chasing undervalued and lagging assets, particularly those that were overlooked during Bitcoin’s dominance phase. Narratives are beginning to gain traction across the altcoin market, with the Liquid Staking Derivatives (LSD) theme leading current sentiment. This narrative boost has drawn renewed attention to tokens such as LDO and several Layer 2 assets.

Altcoin Vector emphasizes that this is more than just a temporary shift. With Ethereum at the helm and altcoin momentum broadening, market participation is expanding into narrative-backed sectors. As BTC steps back and ETH assumes leadership, the market is entering a phase where structure, momentum, and narrative are synchronized. This kind of alignment has historically marked the start of meaningful altseason cycles rather than short-lived fakeouts.