Bitcoin’s Grip Weakens: Dominance Drops Below 57% - Is The Altcoin Supercycle Finally Here?

Bitcoin's throne is looking shaky as its market dominance slips below the critical 57% level—sparking speculation that the altcoin rotation has officially begun.

The King's Weakening Crown

Market data shows Bitcoin's share of total crypto market cap dipping under 57% for the first time in months. That decline signals capital might finally be flowing toward alternative digital assets instead of just piling into the OG cryptocurrency.

Altcoins Awaken

While Bitcoin still commands over half the market, its slipping dominance often precedes major altcoin rallies. Traders are watching Ethereum, Solana, and other major altcoins for signs of breakout momentum as investors diversify beyond the blue-chip crypto.

Cycle Theories Heating Up

Historical patterns suggest declining Bitcoin dominance correlates with risk-on behavior across crypto markets. If this trend holds, we could be looking at the early innings of the next altcycle—where everyone suddenly becomes a technical analyst until the next correction hits.

Traditional finance might dismiss this as mere crypto volatility, but then again they're still trying to figure out how to short something that trades 24/7 without their permission.

Bitcoin dominance has recently dipped below a crucial level, indicating a shift in market dynamics. This decline shows that the funds are flowing into altcoins, potentially signaling the onset of an “altcoin season.” Analysts say Bitcoin’s dip could be the start of a major altcoin rally.

Is This The Start of a New Cycle?

According to Coinmarketcap, Bitcoin dominance has dropped to around 56.6%, while ethereum has climbed to 13.9% and other altcoins now make up 29.5% of the market. This clear rotation of funds away from Bitcoin into altcoins has caught the attention of traders and analysts alike.

#Altcoins Takeover#Bitcoin dominance keeps sliding…#Altseason2025 is heating up.pic.twitter.com/PXpMadQyAL

Crypto analyst Michaël van de Poppe says that this is the first actual breakdown of the Bitcoin dominance downwards in nearly 3 years. According to him, this marks the end of the prolonged altcoin bear market and the beginning of a new upward cycle, comparing this phase to the period between 2019 and 2020.

Echoing this sentiment, Trader Tardigrade points out that bitcoin dominance has formed a second bear flag, signaling a potential breakdown. Each drop in dominance tends to trigger a surge in altcoins.

Investor Ted Pillows highlights that altcoin open interest (excluding ETH) has now surpassed Bitcoin’s. Historically, in December 2024 and March 2024, this signaled a local top within two weeks. He also added that in bull markets, sharp 20–30% corrections are normal before the trend continues higher.

Bitcoin Consolidation Signals Breakout Potential.

Meanwhile, Bitcoin itself remains in a consolidation phase

Mike Novogratz, CEO of Galaxy Digital, explained that Bitcoin is consolidating as treasury firms “take their shot” with other tokens. Still, he expects an upswing later this year.

Van De Poppe says that its monthly chart looks phenomenal, signaling more upside ahead. In the short term, he expects some consolidation around the $117K resistance, the last major hurdle before a new all-time high. A few days of sideways movement could come before Bitcoin breaks through.

On-chain data also supports this narrative. Glassnode recently shared that Bitcoin has seen three major ranging phases this cycle, each lasting several months. Since late August, BTC has been consolidating around $111K, with the market awaiting a breakout.

At the same time, recent ETF inflows show growing institutional interest, a sign of confidence in the market.

If Bitcoin manages to reclaim the $117,200 level, the door could open for a new all-time high within just a few weeks. On the flip side, if Bitcoin gets rejected at this resistance, it could trigger a pullback toward $113,500 .