Bitcoin Dominance Declines Amid Rising ETH and XRP Strength, Suggesting Potential Altcoin Season

• Bitcoin dominance has experienced a significant 4.5% decline to 61.82%, fueled by robust gains in Ethereum and XRP alongside a revitalized altcoin market.

• Trading volume surged to $77.93 billion, indicating an active capital rotation from Bitcoin into altcoins rather than passive portfolio adjustments.

• According to COINOTAG analysis, if Bitcoin dominance dips below 60%, historical trends suggest a brief but intense altcoin season could accelerate market dynamics.

Bitcoin dominance drops to 61.82% amid strong ETH and XRP gains, with volume surging to $77.93B, signaling active capital rotation and potential altcoin season ahead.

Volume Surge Signals Active Capital Rotation to Altcoins

Bitcoin dominance has shown two notable declines in recent months, with the most recent drop beginning in early July 2025. From a peak above 65%, dominance has decreased to 61.82%, coinciding with a significant volume increase to approximately $77.93 billion. This surge in volume reflects active capital rotation from Bitcoin into altcoins rather than mere passive rebalancing by investors.

Chart analysis reveals bearish candle formations and high volume spikes, underscoring strong selling pressure on Bitcoin in favor of altcoin pairs. This dynamic has pushed Bitcoin dominance to its lowest level since mid-April, weakening its grip on the overall cryptocurrency market and highlighting a shift in investor sentiment.

Ethereum and XRP Lead the Altcoin Charge

The current decline in Bitcoin dominance is largely driven by the impressive performance of Ethereum and XRP. Unlike previous altcoin cycles dominated by a handful of tokens, this phase sees these two assets capturing a substantial portion of rotating capital. Their rising valuations and increasing market share underscore their growing influence within the crypto ecosystem.

While earlier cycles, such as the 2021 rally, witnessed dominance drops from 74% to 40% over several months, the present environment is characterized by a broader altcoin landscape. Despite this dilution, ETH and XRP’s strength remains a key factor in the shifting market dynamics, signaling a more diversified altcoin season.

Rapid Trend Shifts Suggest Short-Lived but Intense Altcoin Season

Historical data indicates that altcoin seasons typically develop rapidly, often within a few months. Past events, including post-election market movements, have demonstrated that even a 7% drop in Bitcoin dominance can trigger a swift but temporary surge in altcoin performance.

The current trend, while more moderate, already shows strong market engagement. Should Bitcoin dominance fall below the critical 60% threshold, the probability of intensified altcoin momentum increases. However, investors should remain cautious as sudden Bitcoin price movements or macroeconomic factors could quickly reverse this trend.

In summary, the recent decline in Bitcoin dominance, supported by volume spikes and the ascent of Ethereum and XRP, points to a dynamic market phase. This evolving landscape mirrors previous cycles but unfolds within a more complex and rapidly changing crypto environment.

Conclusion

The ongoing reduction in Bitcoin dominance to 61.82%, driven by significant Ethereum and XRP gains and heightened trading volume, signals a notable shift in the cryptocurrency market. This active capital rotation suggests a potential altcoin season, albeit likely brief and volatile. Market participants should monitor key levels, especially the 60% dominance threshold, to gauge the sustainability of this trend and adjust strategies accordingly.