Is Altcoin Season Back? Bitcoin Dominance Drops as Altcoins Flash Golden Cross
#AltcoinSeasonLoading | $ETH $XRP #ETHCrossed2500 #StrategyTrade
After months of dominance by Bitcoin, the altcoin market is showing strong signs of life — and the clearest signal yet may be the first golden cross on the altcoin market cap chart in over four years.
On Tuesday, Bitcoin dominance (BTC.D) — which measures BTC’s share of the total crypto market cap — dropped to 62.2%, down from 65.37% on May 7. This decline suggests a capital rotation into altcoins, a classic sign that altseason may be brewing.
Fueling this narrative is Ethereum’s renewed strength, with $ETH recently crossing $2,500, drawing both institutional and retail eyes back to the broader altcoin market.
Despite fragmented narratives, isolated rallies, liquidity challenges, and token unlock headwinds during BTC’s recent bull run, altcoins are regaining momentum. And now, the altcoin market cap has printed a golden cross, where the 50-day moving average crosses above the 200-day MA — a traditional signal of long-term bullish momentum.
According to investor and analyst OxNobler, this is the first such cross since 2021. Back then, the move preceded a historic rally that saw altcoin market cap surge from $150 billion to $1.67 trillion.
Meanwhile, Bitcoin has rebounded strongly from its April 7 low of $74,508, recently hitting $105,819, supported by macro tailwinds like reduced trade tensions and a dovish Fed stance. ETF inflows have also remained strong, exceeding $920 million in the past two weeks.
Yet as BTC strengthens, capital is beginning to flow into altcoins, evidenced by the drop in dominance and uptick in on-chain metrics. Data from Bitfinex Alpha shows more than 3 million BTC are now in profit, suggesting reduced selling pressure — an environment historically favorable for altcoin rallies.
Bottom Line: With a golden cross, declining BTC dominance, and increasing investor appetite, the altcoin market could be on the verge of a significant breakout. Keep a close eye
