- Bitcoin dominance fell below 58%, signaling the start of the altcoin season.
- Altcoins like XRP, Solana, and ADA are outperforming Bitcoin, showing growing market interest.
Bitcoin’s [BTC] price has surged dramatically, breaking through the $65K resistance and reaching an impressive peak of $92,903.98.
Over the past 24 hours, the cryptocurrency saw a 1.34% increase, and in the past week, it rose by 6.35% as per CoinMarketCap.
Its monthly performance has been even more remarkable, soaring by 35.58%, reflecting BTC’s strong momentum in the market.
However, despite Bitcoin’s stellar performance, there are emerging signals that the cryptocurrency landscape might be shifting.
Is Bitcoin dominance at risk?
According to a recent analysis from QCP Capital, a trading firm based in Singapore, Bitcoin’s dominance (BTC.D) falling below a critical threshold could trigger the long-anticipated rise of altcoins.
The firm highlighted,
“While BTC and ETH traded sideways over the weekend, SOL outperformed both majors as it rallied ~17% from Friday’s lows. It does seem like SOL and other altcoins are starting to gain some traction especially with a pro-crypto Trump administration.”
Adding to the fray was an X (formerly Twitter) user, who said,
Source: Gum/X
Thus, as altcoins continue to surge, a key question arises: Is altcoin season just around the corner?
Altcoins vs. Bitcoin
Historically, altcoins tend to thrive when Bitcoin consolidates after a strong rally, as traders shifted profits into smaller-cap coins.
However, QCP Capital cautioned that many investors remain cautious, especially as Bitcoin neared the psychologically significant $100,000 milestone.
Despite this, QCP believed that a combination of a potential Donald Trump victory in the U.S. presidential election and anticipated interest rate cuts by the Federal Reserve could catalyze a robust altcoin rally in the near future.
The Bitcoin dominance (BTC.D) stood at 60.10% at press time, marking a notable rise from 39.92% in November 2022.
Over the past two years, BTC has consistently outpaced altcoins, leaving most digital assets trailing in its wake.
However, recent weeks have seen a shift, with altcoins like Solana [SOL], Cardano [ADA], and Ripple [XRP] gaining ground, outperforming Bitcoin.
This resurgence in altcoin performance aligns with the growing expectation of a pro-crypto stance from a potential Trump administration, suggesting that the balance between BTC and altcoin dominance could be shifting in the near future.
What are the latest market trends telling us?
As of the latest data from CoinMarketCap, Bitcoin has experienced a 6.47% increase over the past week, but altcoins like Solana, XRP, and Cardano saw hikes of 15.77%, 64.33%, and 48.70% respectively.
This shift in momentum is also reflected in the rise of the Altcoin Season Index from 33 to 39, highlighting the growing interest in assets like XRP, Dogecoin [DOGE], and Bonk [BONK].
Therefore, if Bitcoin struggles to regain its dominance, the current trend could mark the early stages of an altcoin season, offering investors the opportunity for greater diversification in their crypto portfolios.