Crypto's Landscape Transforms: Bitcoin's Fall Opens the Door to Altcoin Supremacy in 2025

Bitcoin’s dominance has recently tested the 100-week Exponential Moving Average (EMA) at around 57.96%, fueling discussions about whether altseason could arrive in 2025. Both analysts and market indicators point to a likely capital migration from

to altcoins, similar to shifts seen in 2017 and 2021. The metric that tracks Bitcoin’s market share has dropped from a high of 65% down to 58%—a historical level that often signals altcoin strength. This downward move is confirmed by technical signals, such as the break of a multi-year trendline, a daily death cross pattern, and unsuccessful attempts to reclaim crucial support, according to on-chain observers like Ash Crypto and Mister Crypto Bitcoin Dominance Falls to 58% as Analysts Signal Potential Altseason 2025 [ 4 ].

This decrease in Bitcoin’s market share aligns with heightened activity among altcoins. The TOTAL3 index, which tracks all cryptocurrencies except Bitcoin and

, has moved into a price discovery phase amid strong buying momentum. For example, Ethereum (ETH) has climbed 170% from its recent lows and is now trading close to $3,854—just 23% away from its record high. Institutional interest in ETH has also grown, with companies such as and Technologies together holding 2.33 million ETH (worth $8.9 billion) as of July 2025. This uptick in institutional involvement is also evident in the open interest for ETH futures, which has hit $58 billion—doubling since the end of June—and, for the first time since 2022, surpassing Bitcoin’s share of futures trading volume Altseason 2025: Altcoins Surge as Bitcoin Tops [ 2 ].

Additional market data highlights a shift of funds into altcoins. Altcoin futures now represent 83% of all futures trading volume, with Bitcoin accounting for just 17%. Retail engagement has also grown, as transactions under $10,000 have surged 9.7% over the last month—a trend typically seen ahead of major rallies. Analysts point out that Bitcoin’s dominance metric has formed a bearish cross on the three-week chart and broken out of a three-year uptrend, which could indicate a loss of market leadership by BTC. This development follows patterns from the past, where altcoins tended to outperform as Bitcoin’s dominance dropped Bitcoin Dominance Falls to 58% as Analysts Signal Potential Altseason 2025 [ 4 ].

Forecasts for the altcoin market suggest it could see substantial gains if current patterns persist. In 2017, for instance, the altcoin market cap jumped from $1.2 billion to $345 billion following a similar fall in Bitcoin dominance. Current projections show that the altcoin market could grow to $5–$7 trillion should liquidity continue to flow into small and mid-cap coins. A key level to watch is Bitcoin dominance below 50%, with some analysts highlighting 46% as an even stronger signal. The Altcoin Season Index, which tracks capital rotation, has nearly doubled to 31, indicating a growing preference for altcoins Bitcoin Dominance Falls to 58% as Analysts Signal Potential Altseason 2025 [ 4 ].

Despite these bullish indicators, some experts advise caution, noting that history may not repeat exactly. Although the current market shares some traits with previous cycles, it is now more mature, with clearer regulations and greater institutional involvement compared to 2017. For example, Ethereum’s open interest dominance has climbed to 40%, a rarely seen level, but this does

guarantee that all altcoins will rise equally. Smaller-cap coins might still experience volatility as capital moves around, with sectors like AI, DePIN (Decentralized Physical Infrastructure Networks), and memecoins positioned as possible winners Bitcoin Dominance Shifts Altcoins 2025 [ 5 ].

The next several weeks will be important in determining whether the altseason narrative holds. Traders should watch if Bitcoin can remain above the 4-hour 200 MA ($98,139) and keep an eye on resistance levels for the overall Altcoin Market Cap. If Bitcoin dominance drops below 55.70% for an extended period, a larger shift into altcoins could follow, while a recovery above 62.50% might stall this movement. For now, available data points toward a potentially significant altcoin phase in 2025, though the final outcome will be shaped by broader economic trends and on-chain liquidity dynamics Bitcoin Dominance Falls to 58% as Analysts Signal Potential Altseason 2025 [ 4 ].