Bitcoin’s Declining Dominance Sparks Altcoin Surge Ahead of 2025
Bitcoin's dominance in the crypto market has dropped to 56.1%, marking a pivotal moment for altcoins as many investors look to diversify into smaller cryptocurrencies.
This shift in market dynamics suggests that altcoins could see a surge in interest throughout December, particularly as Bitcoin’s dominance falls below its established support levels. Mikybull Crypto, a prominent analyst, pointed out that this is a clear sign that the crypto market has entered what’s known as “altseason,” a period when altcoins generally rally as Bitcoin loses ground.
Wow, Bitcoin dominance has just broken down the 2-year support.
We are indeed officially in #ALTSEASON folks! https://t.co/IYfQF7P7XI pic.twitter.com/fVysBYuOKn
— Mikybull 🐂Crypto (@MikybullCrypto) November 30, 2024
As Bitcoin’s market dominance wanes, investors are increasingly reallocating their funds, moving away from BTC and into altcoins.
Bitcoin ranging between $91,000 & $100,000 may very well be a recipe for Ethereum to take the lead and enable money flow into smaller Altcoins#BTC $ETH #Crypto pic.twitter.com/E5Il60sjzK
— Rekt Capital (@rektcapital) November 27, 2024
This trend is already evident in assets like Ethereum (ETH), which has seen a sharp rise in demand, particularly for leveraged ETH exchange-traded funds (ETFs). Since the U.S. presidential election in early November, interest in these ETFs surged by over 160%, sparking expectations of an Ethereum price rise above $4,000.
READ MORE: Ripple Prepares to Launch RLUSD Stablecoin, Eyeing U.S. Market Domination
XRP, the sixth-largest cryptocurrency, is another coin that could benefit from Bitcoin’s declining dominance. Some analysts are predicting that XRP’s price could climb as high as $2.57 by December 2024. This growth is partially attributed to Bitcoin’s halving event, which historically triggers a rally in other cryptocurrencies, including XRP. Furthermore, potential advancements regarding an XRP ETF could act as a significant catalyst for its price, especially after asset manager 21Shares filed with the SEC to launch one in November.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
