An altcoin season may be on the horizon as momentum shifts in the crypto industry. Bitcoin's dominance sharply fell from over 65% to 63.89% just when Bitcoin surpassed $100,000 for the first time since February 3.
This has triggered broad growth in altcoins, with Ethereum rising nearly 13%, and major names like SOL, DOGE, and ADA each adding over 6%. Combined with the rebound in the ETH/BTC ratio from its lows in 2020, this setup indicates a possible rotation into altcoins for the first time in several months.
Is the altcoin season approaching? Bitcoin's dominance is declining while ETH and major tokens are rising.
Bitcoin's dominance sharply fell from over 65% to 63.89% just hours after Bitcoin surpassed $100,000 for the first time since February 3.
This change has triggered a significant rise in altcoins, with Ethereum jumping nearly 13% in the last 24 hours, while Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) each added over 6%. Until yesterday, Bitcoin's dominance was at its highest level since January 2021, indicating how aggressively Bitcoin has outperformed the broader market in recent months.
A sudden reversal like this often signals a capital rotation, as traders start to take profits from Bitcoin and move into altcoins. Recently, CryptoQuant CEO Ki Young Ju called the Bitcoin cycle theory outdated as TradFi takes precedence.
This narrative is further supported by the ETH/BTC ratio, which recently reached its lowest level since 2020, indicating a prolonged underperformance of Ethereum relative to Bitcoin. A rebound from such historical lows could signal the beginning of a structural shift in favor of altcoins. If Bitcoin's dominance continues to decline while ETH/BTC rises, it will be a strong signal that the market is entering an altcoin season.
With the increase in altcoin volumes and capital rotation into broader sectors, May 2025 could mark the start of a major altcoin season.
May 2025: A turning point to the altcoin season?
The CoinMarketCap altcoin season index has risen from 23 to 36 over the last four days. This index tracks whether Bitcoin or altcoins are outperforming over a specific period.
Values below 25 indicate a “Bitcoin season,” when Bitcoin outperforms most altcoins. Ratings between 25 and 75 are considered neutral, while values above 75 officially signal an “altcoin season.” The current jump into the neutral zone occurred after hitting an annual low of 12 in late April — its weakest point since December when it reached 87.
The CMC altcoin season index measures whether at least 75% of the top 100 tokens (excluding stablecoins and asset-backed tokens like WBTC and stETH) have outperformed Bitcoin over the last 90 days. So far in 2025, Bitcoin has risen 10% year-to-date — outperforming nearly all major altcoins except XRP, which has risen over 12%. Meanwhile, Ethereum remains 30% down year-to-date, while tokens like LINK, DOGE, AVAX, and SHIB have fallen over 20%.
Despite this weak performance since the beginning of the year, the sharp drop in Bitcoin's dominance, strong altcoin rallies in early May, and the rise in the altcoin index suggest that May 2025 could mark the beginning of a new altcoin season.
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