Altcoin Rally Begins as Bitcoin Dominance Drops Below 59%
Bitcoin's dominance over the crypto market has begun to wane, sparking talk of an altcoin season rally. $BTC dominance fell below 59%, while altcoin trading volume surged nearly four times higher than Bitcoin's.
This shift in market dynamics is a common precursor to altseasons, where traders move capital from dominant assets like Bitcoin into higher-risk alternatives.
The data suggests that altcoins are gaining strength, with 72.5% of tracked altcoins outperforming Bitcoin through September 23. Major altcoins like Ethereum and XRP are also seeing significant inflows, with U.S. spot ETFs recording six straight days of inflows for Ethereum and eleven weeks of inflows for XRP.
The $ETH/$BTC chart has broken a nearly five-year downtrend, pointing to a possible shift toward altcoins. A stronger trend in this ratio can support large- and mid-cap altcoins.