Bitcoin’s Declining Dominance Sparks Altcoin Surge in 2025

Altcoins seem ready for a significant rally as

dominance shows bearish technical patterns, based on recent market reports. Several indicators point to a movement of funds from Bitcoin into other cryptocurrencies, with the Altcoin Season Index reaching 80% in 2025—its peak for the year. This index tracks how the top 100 altcoins perform against Bitcoin over the past 90 days, with a 75% threshold marking the start of an official altcoin season. Weekly chart breakdowns of Bitcoin dominance (BTC.D) further support this narrative, displaying a bear flag formation that has often signaled further declines in Bitcoin’s market share. Analyst TATrader_Alan observes that this breakdown signals sustained momentum for altcoins, with capital shifting more rapidly as Bitcoin’s dominance diminishes Crypto Markets Flash Altseason Signals as Bitcoin Loses Grip on Dominance [ 2 ].

Several factors reinforce the bearish outlook for Bitcoin. The Chande Momentum Oscillator (CMO), which measures the strength of price trends, fell below 20 in August 2025—a level typically linked to bear markets. Analyst Ali Martinez also pointed to Bitcoin’s market value to realized value (MVRV) bands, cautioning that failing to break above $114,250 could send the price down to the crucial $92,600 support level Trader Spots Bitcoin Flashing Signal That Precedes Bear Markets [ 3 ]. Additionally, Bitcoin’s cycle theory—which suggests a 151-week growth period followed by a 51-week downturn—implies the current bull run may be over. This theory matches the timing of Bitcoin’s latest consolidation, with analysts like EXCAVO forecasting a 50–60% drop to $61,000 by September 2026 Analyst Says Bitcoin Bear Market Has Started, Predicts 50% Crash to $61,000 [ 1 ].

Even with Bitcoin’s negative signals, the wider crypto sector is showing resilience. Institutional interest and supportive macroeconomic factors—such as clearer regulations and favorable monetary policy—are boosting demand for both Bitcoin and altcoins. However, as Bitcoin’s dominance slips, altcoins are drawing more investor focus. The ETH/BTC ratio, a key sign of altcoin strength, has bounced back to 0.058 after a lengthy decline, indicating possible capital rotation. Past examples, like Dogecoin’s 36,000% surge and Shiba Inu’s explosive gains during earlier altcoin seasons, highlight the potential for substantial returns in this climate Crypto Markets Flash Altseason Signals as Bitcoin Loses Grip on Dominance [ 2 ]. Analysts also point out that current conditions resemble those before previous altcoin seasons, with on-chain data and trading activity supporting the case for altcoin growth Crypto Markets Flash Altseason Signals as Bitcoin Loses Grip on Dominance [ 2 ].

Analysts hold differing opinions, reflecting the market’s uncertainty. Some, like John Glover from Ledn, believe Bitcoin could climb to $140,000 by the end of 2025 before entering a bear phase in 2026. Others, such as EXCAVO, predict a steep 65% drop to $40,000 by 2026. These projections stem from varying interpretations of Bitcoin’s market cycles and institutional involvement. Meanwhile, analysts focused on altcoins stress that only select projects may see significant gains, rather than a broad market rally, citing the sheer volume of cryptocurrencies (over 1 million) as a challenge to widespread growth Analyst Says Bitcoin Bear Market Has Started, Predicts 50% Crash to $61,000 [ 1 ].

The contrast between Bitcoin’s bearish trends and the optimism around altcoins highlights the shifting landscape of the crypto market. As Bitcoin’s dominance changes, more investors are turning to altcoins with strong use cases, such as

and DeFi platforms, as well as speculative tokens like . This transition is further fueled by macroeconomic influences, including expected interest rate cuts by the Federal Reserve and regulatory progress that boosts the credibility of altcoins. Although risks like volatility, regulatory ambiguity, and possible corrections persist, the current outlook points to an active and evolving period for alternative cryptocurrencies.