Bitcoin Dominance Capped Below 60% as Altcoins Gain Strength

A signal from Glassnode indicates that altcoins are gaining strength as Bitcoin's dominance remains capped below 60%. The Altcoin Cycle Signal, a metric developed by Glassnode to measure relative market-cap growth among top altcoins compared to Bitcoin, has flipped to favor altcoins. This condition is commonly referred to as 'altseason.'

The signal is attributed to the breadth of participation in the current rally, which has seen altcoins outperforming Bitcoin. The combined altcoin market cap reached $1.19 trillion on Tuesday, its highest level since late January, with altcoins up 33% since August 19.

Despite this, Bitcoin's dominance remains rangebound near 59-60%, failing to break above the 60% level in the past month. The environment is described as 'complacency' among Bitcoin investors, who have been slow to accept that Bitcoin has lacked sustained progress against altcoins since its dominance reached about 66% in June 2025.

The resurgence of spot ETF demand across both Bitcoin and Ether products also suggests renewed risk appetite or willingness to allocate through regulated vehicles. US spot Bitcoin ETFs recorded $999 million in inflows on Monday, while Ether ETFs pulled in $270 million, both the highest daily totals since October 2025.