Is Altcoin season back? Exploring Bitcoin's supremacy and altcoins' golden cross
The altcoin market capitalization chart reveals the first golden cross in four years, indicating a strong recovery.
Bitcoin dominance fell to 63% on Tuesday from 65% on May 7, suggesting capital rotation.
Ethereum's strong bullish return may entice mainstream investors as altcoin interest develops.
The altcoin market has grown difficult to manage during Bitcoin's (BTC) bull cycle due to splintered narratives, isolated rallies, liquidity shortages, and massive token unlocks. In recent weeks, the altcoin market has shown signs of a dramatic comeback, boosted by Bitcoin's decline.
The cryptocurrency market capitalization chart shows a golden cross pattern, bolstering the idea of a full altcoin season. When a short-term moving average, like the 50-day, crosses above a long-term average, like the 200-day, the market is likely to enter a significant uptrend.
The graphic below, provided by crypto expert and investor OxNobler on X, shows a golden cross for the first time since 2021. Following the trend, altcoins rallied broadly, reaching $1.67 trillion from $150 billion.
Bitcoin's price has rallied from the April 7 tariff-triggered crash low of $74,508 to $105,819 on Monday, driven by macro tailwinds like easing trade and tariff tensions and the Fed's dovish interest rate policy.
the market cap hitting a new all-time high and ETF inflows topping $920 million over the previous two weeks indicate ongoing capital rotation into Bitcoin. On-chain data shows over 3 million BTC now profitable "Bitfinex Alpha reported a decline in losing coins.
Bitcoin dominance (BTC.D), BTC's market capitalization as a proportion of the crypto market cap, fell to 62.2% from 65.37% on May 7.
Because cash moves from BTC to altcoins, Bitcoin dominance declines typically foreshadow altcoin season. Capital rotation fuels cryptocurrency rallies. After peaking at 73.62% in 2021, Bitcoin dominance corrected, encouraging altcoin rallies.
