Bitcoin News Today: Ethereum Surges 30% as Bitcoin Dominance Dips Below 60%

Following Bitcoin's recent consolidation, the crypto market has shown early signs of a potential shift in momentum toward altcoins. Ethereum has surged nearly 30% in a week, outpacing Bitcoin’s 5% gain and reaching an intraday high of $4,715, close to its 2021 peak [1]. The renewed strength in ETH is supported by record inflows into spot Ethereum ETFs, which have drawn $2.3 billion over the past six days, including a $1 billion influx in a single trading session [2]. These flows have marked a reversal in the usual trend, as Ethereum ETFs have brought in $1.5 billion more than Bitcoin ETFs since the start of July [3].

Institutional interest in Ethereum has also grown, with treasuries holding over $16.5 billion in ETH, led by firms such as BitMine, SharpLink, and Ether Machine. On-chain metrics further reinforce Ethereum’s leading role, as the DeFi total value locked has risen to $96 billion, accounting for over 60% of the market [4]. This activity suggests Ethereum is not just outperforming Bitcoin but also acting as a foundational asset for broader market activity.

At the same time, Bitcoin’s dominance has dipped below 60% for the first time in six months, falling nearly seven percentage points from its June high of 66% [5]. The decline marks the end of a 1,020-day upward trend, signaling a potential turning point in market dynamics. Analysts note that this drop follows a five-wave structural pattern, a historical indicator of leadership transitions [6]. A falling Bitcoin dominance typically indicates that investors are reallocating capital toward altcoins, a trend that is beginning to show in rising altcoin market caps nearing record levels [7].

Despite these developments, the Altcoin Season Index remains neutral at 51, indicating the market has not yet reached the historical thresholds that confirm a full altcoin season [8]. The index is designed to identify altcoin dominance by tracking the performance of the top 50 altcoins relative to Bitcoin over a 90-day period. Historically, altcoin seasons are confirmed when at least 75% of these assets outperform Bitcoin. At present, the market remains in a transitional state, with a 240-day streak without an altcoin season — well beyond the average 66-day gap between such events [9].

The current market is still largely concentrated in Bitcoin and Ethereum. While Ethereum shows signs of leading the shift, other altcoins have not yet demonstrated the broad-based momentum seen in previous altcoin seasons. For example, during the 2021 cycle, layer 1 and layer 2 tokens such as Solana (SOL), Cardano (ADA), and Avalanche (AVAX) surged while Bitcoin traded sideways. Today, few altcoins outside Ethereum have posted significant gains relative to BTC [10].

Trading volume has also remained focused on Bitcoin and Ethereum pairs, with minimal diversification into smaller tokens. On major exchanges like Binance, volume is still dominated by BTC and ETH, and altcoin-focused ETFs have yet to emerge as strong drivers of capital inflows [11]. This suggests that while the conditions for an altcoin season are forming, the market still requires broader participation and confirmation across multiple asset classes and sectors.

In summary, the crypto market is showing early indicators of a shift in leadership, with Ethereum outperforming Bitcoin and drawing significant capital inflows. Bitcoin dominance has declined, and altcoin market caps are rising. However, the Altcoin Season Index remains in a neutral zone, and key metrics such as token breadth, volume rotation, and ETF inflows have not yet reached levels that confirm a full altcoin season. The current environment is evolving, but investors should remain cautious, as confirmation of a full altcoin cycle still requires broader participation across the crypto ecosystem [12].

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[1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] Altcoin season or not? A look at the numbers driving speculation

(https://coinmarketcap.com/community/articles/689ced88f42577250660a909a/)