Bitcoin Dominance Falls Below 60%, Altcoin Season Looms

Bitcoin's grip on the cryptocurrency market is loosening as its dominance falls below 60%. According to TradingView, Bitcoin's share of total market value has slipped to 58.5% by September 26. The metric tracking this trend failed to hold above the psychologically important 60% threshold.

The altcoin market cap, excluding Bitcoin, has seen a significant increase since mid-August, climbing from around $880 billion to roughly $1.17 to $1.19 trillion in late September. This represents a 33% rise over the past few weeks.

Glassnode's Altcoin Cycle Signal, which measures conditions favorable for altcoin outperformance on a scale of 0 to 100, hit 81.25 on September 22. However, the Altcoin Season Index, another gauge tracking whether altcoins are broadly outperforming Bitcoin, has remained in the neutral-to-Bitcoin-led zone.

The divergence between these two signals is worth noting. Glassnode's metric focuses on on-chain conditions, measuring if the plumbing of the crypto market is set up for altcoin flows. The Altcoin Season Index looks at actual price performance relative to Bitcoin. If Bitcoin continues to struggle reclaiming and holding above the 60% dominance level, it could strengthen the case for broader altcoin strength.