Despite Bitcoin reaching new all-time highs, its market dominance remains largely unchanged, prompting analysts to predict a powerful altcoin season ahead. Crypto analyst Matthew Hyland and others suggest that the real rally for altcoins may be just beginning, especially if Bitcoin Dominance (BTC.D) starts to decline more sharply.
Altcoins Rally While Bitcoin Dominance Holds
Bitcoin reached fresh record highs on three consecutive days this week, climbing to $118,760 on Friday. Yet, Bitcoin Dominance stands at 64.46 per cent, down only 1.53 per cent over the past week. This is surprising to many in the market, as altcoins have shown significant momentum without a major shift in dominance.
“BTC dominance hasn’t even sneezed and alts are ripping,” Hyland posted on X. He further speculated, “What do you think happens if it drops from 65 to 45?”
Historically, a drop in Bitcoin Dominance is considered a key indicator of altcoin season, as it suggests traders are shifting capital into alternative cryptocurrencies.
Capital Flows Fuel Altcoin Momentum
The strength of altcoins despite high Bitcoin dominance hints at fresh capital entering the broader crypto market. Several altcoins have seen explosive growth, with MemeCore leading the top 100 crypto gainers this week, surging by 1,263 per cent. Mog Coin rose by 75.01 per cent, while Stellar increased by 67.43 per cent, according to CoinMarketCap data.
Ether, the second-largest cryptocurrency by market cap, also climbed 17.68 per cent over the past seven days, a move often seen as a signal that traders are beginning to focus beyond Bitcoin.
ETH/BTC Ratio and Market Indicators Suggest Shift
The ETH/BTC ratio, which measures Ethereum’s strength against Bitcoin, rose by 8.39 per cent over the past week. This shift often reflects growing trader interest in altcoins.
However, according to CoinMarketCap’s Altcoin Season Index, the market still leans heavily toward Bitcoin. The Index recorded a “Bitcoin Season” score of 29 out of 100, indicating that Bitcoin is still outperforming most altcoins.
Despite this, some analysts remain optimistic. Michael van de Poppe, founder of MN Trading Capital, said in an X post, “I assume that we’re about to witness the final easy and biggest bull ever on altcoins.”
Analysts Signal the Start of Altcoin Season
Blockchain analytics platform Santiment supports the view that altcoin season is underway. Their latest data suggests that market activity is shifting, though Bitcoin remains the anchor.
“As long as Bitcoin can maintain its position above the crucial psychological support level of around $110k, traders will likely feel comfortable redistributing profits into altcoins,” Santiment noted.
Although Bitcoin continues to dominate the headlines and hold the lion’s share of market capitalisation, the growing momentum behind altcoins, combined with steady investor interest and bullish sentiment, points to the early signs of a wider altcoin rally. If Bitcoin Dominance begins to drop significantly, the current enthusiasm could turn into a full-blown altcoin boom.
