- Bitcoin’s dominance fell below 58%, marking the start of altcoin season.
- Altcoins such as XRP, Solana and ADA are outperforming Bitcoin and showing growing market interest.
Bitcoins [BTC] The price has risen dramatically, breaking the USD 65,000 resistance and reaching an impressive peak of USD 92,903.98.
In the past 24 hours, the cryptocurrency is up 1.34% and in the past week it is up 6.35%. CoinMarketCap.
The monthly performance was even more remarkable, with an increase of 35.58%, reflecting BTC’s strong momentum in the market.
However, despite Bitcoin’s stellar performance, there are signs that the cryptocurrency landscape may be changing.
Is Bitcoin’s dominance in danger?
According to a recent analysis from QCP Capital, a trading firm based in Singapore, Bitcoin’s (BTC.D) dominance below a critical threshold could lead to the long-awaited rise of altcoins.
The company emphasized,
“While BTC and ETH traded sideways this weekend, SOL outperformed both majors as it rose ~17% from Friday’s lows. It appears that SOL and other altcoins are starting to gain some traction, especially under a pro-crypto Trump administration.”
Adding to the controversy was an X user (formerly Twitter) who said:
Source: Gum/X
As the number of altcoins continues to rise, an important question arises: is altcoin season just around the corner?
Altcoins vs Bitcoin
Historically, altcoins have tended to thrive when Bitcoin consolidates after a strong rally, as traders shift their profits to smaller-capitalization coins.
However, QCP Capital warned that many investors remain cautious, especially as Bitcoin neared the psychologically important $100,000 milestone.
Nevertheless, QCP believed that a combination of a potential Donald Trump victory in the US presidential election and expected rate cuts by the Federal Reserve could catalyze a robust altcoin rally in the near future.
Bitcoin (BTC.D) dominance stood at 60.10% at the time of writing, marking a notable increase from 39.92% in November 2022.
Over the past two years, BTC has consistently surpassed altcoins, leaving most digital assets behind.
However, in recent weeks there has been a shift, with altcoins such as Solana [SOL]Cardano [ADA]and Ripple [XRP] is gaining ground and outperforming Bitcoin.
This resurgence in altcoin performance aligns with growing expectations of a pro-crypto stance from a potential Trump administration, suggesting that the balance between BTC and altcoin dominance could shift in the near future.
What do the latest market trends tell us?
According to the latest data from CoinMarketCap, Bitcoin has experienced a 6.47% increase in the past week, but altcoins like Solana, XRPAnd Cardano saw increases of 15.77%, 64.33% and 48.70% respectively.
This shift in momentum is also reflected in the increase in 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, giving investors the opportunity for greater diversification in their crypto portfolios.
