Bitcoin’s falling dominance below 64% shows traders are moving money into altcoins, setting off what looks like a fresh altseason.
As Ethereum leads the charge, mid and small-cap tokens are catching fire, signaling the start of another explosive altcoin rally.
With new trends like tokenized assets and AI in crypto, altcoins are gaining momentum as Bitcoin loses market share once again.
Altseason has returned, and the signs are everywhere. Bitcoin’s market dominance recently dropped to 63.48%, down from 74% in late 2024. Historically, such dips have triggered strong capital rotation into altcoins. As Bitcoin finishes its run, money is quickly flowing into Ethereum and other top altcoins. This the early phase of a fresh altcoin rally, and the momentum appears strong.
Besides the dominance shift, Ethereum’s recent price surge has sparked confidence across the altcoin sector. While Bitcoin still holds the largest market cap, its share of the total crypto market continues to decline. This trend isn’t new. It began back in early 2017, when Bitcoin’s dominance plunged from 92% to 37%. That shift launched the first major altcoin boom. Now, after years of ups and downs, Bitcoin dominance is again pointing downward—signaling another potential altseason.
Source: Crypto Target
Capital Rotation Fuels Altcoin Momentum
Consequently, many expect capital to rotate from Bitcoin into mid and small-cap altcoins. This pattern usually drives huge price gains across a wide range of tokens. Moreover, past cycles suggest that after Ethereum’s breakout, investors often move down the risk curve. That shift boosts the prices of lower-cap coins. Traders who recognize this trend early tend to benefit the most.
The Bitcoin dominance chart shows a consistent long-term decline. From 2018 to 2021, its dominance fluctuated between 40% and 70%. This period included explosive growth in DeFi and NFTs. Each innovation cycle reduced Bitcoin’s grip on the market. Now in 2025, similar innovations in AI and tokenized assets are pushing altcoins forward again.
A Growing and More Diverse Crypto Landscape
Additionally, the market has matured since the last altseason. Today’s investors understand more about risk, cycles, and emerging narratives. This knowledge helps fuel stronger and faster altcoin moves. However, timing still matters. Waiting too long could mean missing out on significant gains.
The post Altseason 2025 Begins as Bitcoin Dominance Slips Below 64% appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
