The altcoin market cap chart reveals the first golden cross in four years, indicating a strong recovery.
Bitcoin dominance fell to 63% on Tuesday, down from 65% on May 7, suggesting a rotation of capital.
Ethereum's strong bullish comeback could attract traditional investors as interest in altcoins grows.
The altcoin market became difficult to navigate during Bitcoin's (BTC) bull cycle due to fragmented narratives, isolated rallies, liquidity shortages, and massive token releases. In recent weeks, the altcoin market has shown signs of a dramatic comeback, bolstered by Bitcoin's decline. The cryptocurrency market cap chart shows a golden cross pattern, reinforcing the idea of a full altcoin season. When a short-term moving average, such as the 50-day, crosses above a long-term average, such as the 200-day, the market is likely entering a significant uptrend.
The chart below, provided by cryptocurrency expert and investor OxNobler on X, shows a golden cross for the first time since 2021. Following the pattern, altcoins have risen sharply, reaching $1.67 trillion from $150 billion.
Bitcoin's price climbed from the tariff-triggered low of $74,508 on April 7 to reach $105,819 on Monday, supported by macroeconomic tailwinds such as easing trade and tariff tensions and the Fed's accommodative monetary policy. With the market cap reaching a new all-time high and ETF inflows surpassing $920 million in the past two weeks, this indicates a continued rotation of capital into Bitcoin. On-chain data shows that over 3 million BTC are now profitable. Bitfinex Alpha reported a decline in losing coins.
Bitcoin dominance (BTC.D), the market capitalization of BTC as a proportion of the cryptocurrency market capitalization, fell to 62.2% from 65.37% on May 7. #proppeseguy
Because funds are shifting from BTC to altcoins, declines in Bitcoin dominance typically prefigure an altcoin season. Capital rotation fuels cryptocurrency rallies. After peaking at 73.62% in 2021, Bitcoin dominance corrected, encouraging altcoin rallies. #TradeStories 