👀 A crash in Bitcoin Dominance (BTC.D) often signals the start of an Altcoin Season (or "Altseason"), where altcoins—cryptocurrencies other than Bitcoin—experience significant price increases. Here's how that transition typically works:
1. BTC Dominance Explained
BTC Dominance = (Bitcoin market cap / Total crypto market cap) × 100.
A falling BTC Dominance means altcoins are capturing a larger share of the total crypto market cap.
2. Why a BTC Dominance Crash Triggers Altseason
Capital Rotation: Investors take profits from Bitcoin and rotate them into altcoins, seeking higher returns.
Risk Appetite Increases: As the market becomes more bullish, traders move into smaller, riskier assets—typically altcoins.
Technical Breakdowns: A sharp breakdown in BTC Dominance often coincides with technical breakouts in major altcoins like ETH, SOL, ADA, etc.
3. What Typically Happens During Altseason
Mid- and low-cap altcoins rally aggressively.
Many altcoins outperform Bitcoin by large margins.
DeFi, AI, gaming, meme coins, and newer narratives gain traction.
4. Confirmation Signals of Altseason
BTC Dominance drops below key support levels (e.g., 48%, 40%).
ETH/BTC and other alt/BTC pairs start outperforming.
Total crypto market cap rises while BTC stagnates or dips.