Experts Predict Bitcoin Dominance Could Set the Stage for Next Altcoin Season

The crypto market is once again buzzing with speculation about the next altcoin season, but opinions remain divided.

Historically, Ethereum has often led the charge during altcoin rallies, acting as a catalyst when the market shifts from Bitcoin dominance to altcoin prominence. However, Ethereum’s recent lackluster performance has raised doubts about whether another altcoin season is on the horizon.

Despite Bitcoin maintaining a strong market presence, some experts believe that a robust altcoin season could still emerge. Joao Wedson, CEO of Alphractal, suggests that Bitcoin’s current dominance might actually set the stage for a powerful altcoin rally in the near future. Drawing from past market cycles, he points out that periods of heightened Bitcoin dominance often precede a surge in altcoin activity.

Wedson notes that while Ethereum’s influence has diminished, altcoin dominance—excluding Ethereum and stablecoins—has remained relatively stable since late 2022. This trend indicates that Bitcoin has absorbed much of Ethereum’s market share, pushing Bitcoin’s dominance to around 62% and combined BTC and stablecoin dominance to approximately 71%. In contrast, Ethereum and other altcoins now make up just 29% of the market.

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Interestingly, Wedson argues that the stronger Bitcoin and stablecoin dominance becomes, the more intense the eventual altcoin season could be. This is because, once Bitcoin’s momentum slows, liquidity may flow back into the altcoin sector, sparking a fresh wave of gains.

Echoing this sentiment, Daan Crypto Trades, a technical analyst, highlights that the altcoin market cap has sharply declined, with Bitcoin and stablecoins overshadowing the rest of the crypto space. He believes that for altcoins to regain momentum, Ethereum needs to recover first. Since most altcoin liquidity pools are based on ETH, a stronger Ethereum is crucial to revitalizing the broader altcoin market.

Daan advises investors to remain cautious for now, as altcoin rallies are typically short-lived and often follow a clear trend reversal. Once there are signs that Ethereum and major altcoins are regaining strength, it could signal a more sustainable altcoin season ahead.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.