#BTCBreaksATH110K #BinanceAlphaAlert $BTC
Bitcoin is booming and analysts say altcoins could be next.
Bitcoin's record-breaking price surge has analysts predicting a potential rally for altcoins - if market conditions align and the cryptocurrency's dominance reaches a key level.
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Bitcoin price reached an all-time high of over $111,000 amid strong ETF inflows and supportive macroeconomic headwinds.
Analysts say a "season of alternatives" could arrive if Bitcoin's dominance reaches 70% and liquidity increases.
Ethereum still lags behind, while Solana and Sui are ahead in terms of scalability and developer attraction.
Bitcoin surged to an all-time high above $111,000 on Wednesday, as institutional inflows and macroeconomic headwinds continued to fuel investor appetite for the world's largest cryptocurrency.
The rally, which has seen Bitcoin's value rise by more than 18% since the beginning of May, has been fueled by continued demand for US-listed Bitcoin exchange-traded funds.
Net inflows into the products exceeded $2.8 billion this month, bringing total ETF holdings to more than $122 billion, according to eToro Australia analyst Rhys Hobson.
"Bitcoin's surge to an all-time high of $111,000 stems from several catalysts," Hobson told Decrypt. "Institutional inflows, particularly via US-based spot Bitcoin ETFs, have pumped billions of dollars into the market, while the Bitcoin halving in April has reduced supply."
Bitcoin price jumps to $107,000 as it approaches an all-time high
Bitcoin's price is approaching an all-time high, approaching it closer to $107,000 on Tuesday afternoon than at any time in four months, according to CoinGecko. The leading cryptocurrency reached $107,000 on Tuesday, according to data from CoinMarketCap and cryptocurrency exchange Coinbase. At $107,000, Bitcoin is now less than 2% away from its all-time high of $108,786, set in January on the day of President Trump's inauguration. Bitcoin has staged a significant recovery since...
Analysts say macroeconomic conditions also played a role, including growing liquidity, a weaker US dollar, and renewed geopolitical uncertainty.
However, attention is beginning to turn to whether the recent breakout could pave the way for renewed strength in altcoins, which have underperformed significantly in the current cycle.
"Altcoin season will begin when two major events coincide," Hobson said. "Quantitative easing should begin, injecting more liquidity into the system, and Bitcoin's dominance should reach around 70%."
Bitcoin dominance, a measure of asset market share, currently stands at around 61%, according to CoinGecko.
Bitcoin is the largest cryptocurrency by market capitalization. Image: Shutterstock/Decrypt
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May 2025
Mina Theodorou, co-founder of Australian exchange Coinstash, said that a broader altcoin price rally remains unlikely in the near term, pointing to the ongoing price discovery phase for Bitcoin.
As Bitcoin continues to explore its price, it tends to absorb a significant portion of market liquidity, she told Decrypt. "We're more likely to see strength in select altcoins and sectors, rather than a broad-based rally," she added.
Despite Ethereum's sluggish performance, new tokens like Solana and Sui have outperformed it, as investors turn to platforms that offer scalability and attract developers.
“Bitcoin is the main driver of the market,” Hobson said. “This will remain the case until the altcoin season begins.”
