Altseason Alert: Bitcoin’s Dominance Wanes as Altcoins Rally
The cryptocurrency market is abuzz with excitement as a fresh wave of capital pours into altcoins, with Bitcoin trading near the $120,000 mark. A recent report from CryptoQuant suggests that several key indicators are pointing to a possible “altseason,” a period when alternative cryptocurrencies outperform Bitcoin. This phenomenon is characterized by a decline in Bitcoin’s dominance, which has dropped sharply by over 6.3% in recent weeks to around 60.5%, its lowest level since March.
Ethereum Leads the Charge
Ethereum, in particular, has been making waves, with a staggering 56% gain in the past month alone, bringing its price to around $3,854. It’s now only 23% away from reclaiming its all-time high of $4,871. Much of the renewed interest in ETH can be attributed to growing institutional demand for Ethereum. Companies like SharpLink Gaming and BitMine Immersion Technologies have been snapping up ETH, with the latter now holding over 625,000 ETH, worth approximately $2.3 billion.
Institutional Confidence on the Rise
The surge in institutional demand for Ethereum is a significant factor contributing to its rally. According to data from Strategic ETH Reserve (SER), 65 institutions now hold 2.33 million ETH, worth $8.9 billion, accounting for 1.93% of Ethereum’s total supply. This renewed interest coincides with Ethereum gaining strength against Bitcoin, as the ETH/BTC pair shows signs of upward momentum, an early signal often associated with the onset of altcoin-led rallies.
Altcoin Season Index on the Rise
Alongside Ethereum’s rally, other major altcoins are also on the rise. BNB is up 23% over 30 days, Solana has gained more than 21%, and XRP is up 44%. Meme coins like BONK and FLOKI are having their moment, with gains of 148% and 119%, respectively. Even lower-cap tokens like PENGU and SPX are outperforming, with gains of over 250%. Out of 424 futures trading pairs on Binance, only 23 posted losses since Bitcoin broke its all-time high, showing that over 94% of the altcoin market has reacted positively.
Technical Indicators Flashing Bullish Signals
Veteran traders and analysts are taking notice of the shifting market dynamics. Bitcoin dominance has entered “Phase 4” – a breakdown stage, according to Merlijn, a veteran trader. Another analyst, Ash Crypto, believes this is the biggest sign of an altseason and an upcoming parabolic pump. A key technical indicator, the Bitcoin dominance chart, has formed a bearish cross on the three-week chart and broken a three-year uptrend line, suggesting that Bitcoin’s share of the crypto market is losing strength, which historically leads to capital rotation into altcoins.
While a full-fledged altseason has not been confirmed, many indicators suggest the market is entering a new phase. As traders eye these structural shifts, the next few weeks could set the tone for a broad altcoin rally in the second half of 2025. With Ethereum futures open interest reaching $58 billion and Ether’s open interest dominance rising to 40%, it’s clear that fresh capital is entering the Ethereum market, and the stage is set for a potential altcoin explosion.
