Bitcoin dominance is in decline, falling to as low as 59.2% earlier on Sunday as the Bitcoin (BTC) price stalls below $100,000, but altcoin markets heat up.
Last around $97,800, Bitcoin bulls remain optimistic that the world’s largest crypto may be about to vault above $100,000. The macro backdrop remains unbelievably strong for the world’s largest cryptocurrency by market capitalization.
Institutions are racing to accumulate, as seen in the massive Bitcoin ETF inflows since the election. And more companies may soon follow Microstrategy’s lead. The largest corporate holder of BTC’s executive chairman of Microsoft Michael Saylor gave a short presentation on the pros of adopting a Bitcoin treasury strategy to Microsoft’s board on Sunday.
President-elect Donald Trump’s incoming administration, and the incoming Republican-held Congress, are expected to herald in a new era of pro-crypto policy in the US, including the possibility of the establishment of a national Bitcoin reserve.
Altcoin markets were suppressed by a strongly anti-crypto Biden administration and SEC over the past three years.
Whilst all of this is great for Bitcoin, it’s arguably even better for altcoin markets, hence the recent decline in Bitcoin dominance.
Whilst it remains to early to definitively say altcoin season is here – at 57%, Bitcoin dominance has only so far dropped back to its summer 2024 levels and CoinMarketCap’s altcoin index was last at 74 (75 means altcoin season) – a new alt season seems all but inevitable. XRP (XRP) has raced a staggering 322% higher in the past 30 days, adding a staggering more than $80 billion in value to cryptocurrency markets and taking the fourth largest crypto by market cap.
Crypto’s arch-enemy Gary Gensler will step down as SEC chair when Trump is inaugurated in January, and altcoin bulls are hoping this will herald the start of a new golden age for the US crypto industry.
But chart analysis suggests altcoin season could be about to accelerate, with Bitcoin dominance set to dive.
X user Mikybull Crypto pointed out a pattern that Bitcoin dominance tends to remain at elevated levels until roughly 240 days after each halving, only to then dive spectacularly over the course of the next 6 or so months.
Solana (SOL) recently hit new record highs in the $260s, Cardano (ADA) is up over 200% in 30 days, and Ethereum (ETH) is eyeing a retest of $4,000.
