The correlation of Bitcoin with altcoins is like a dance: before, everyone moved with Bitcoin, like the main one at the party, but now altcoins are starting to groove on their own.
What happened?
Bitcoin$BTC is the king of crypto, and when it sneezed, all altcoins (like Ethereum$ETH , Solana) also coughed. The correlation was high, almost 0.8–0.9: Bitcoin rises — everyone rises, falls — everyone falls. Why? Bitcoin is like 'digital gold', half the market is in it, and investors often enter crypto through it.
What's happening now?
The era where everyone dances to Bitcoin is fading. In 2025, the correlation falls — sometimes to 0 or even lower. For example, Ethereum surged 70% from June to August, while Bitcoin barely rose 9%. Bitcoin's dominance (its market share) is also falling: from 65% to 57–59%. It's like a signal: altcoins are preparing for their party, the 'alt season', where they can soar while Bitcoin smokes on the sidelines.
Why is that?
Bitcoin is becoming 'boring' for big money (ETFs, regulations), while altcoins are risk and hype, where people rush for profit.
The market is waiting for a decrease in the Fed's rates, and investors are ready to throw money into risky coins.
Some altcoins (like stablecoins) don't pay attention to Bitcoin at all.
What will happen?
If the correlation continues to fall, expect movement: altcoins may soar (like in 2021), but there will also be sharp drops. There are already signs — for example, the 'bearish cross' in Bitcoin dominance on August 24. It's like a hint that altcoins will soon light up.
