"Capital Leaving Bitcoin as 3-Year Uptrend Breaks Sparks Altcoin Rally"

The cryptocurrency sector is beginning to display early indications of an upcoming altcoin season as Bitcoin’s dominance weakens, with several metrics suggesting a shift in how capital is distributed. The Altcoin Season Index (ASI), which tracks the top 100 altcoins’ performance compared to

over a 90-day span, climbed to 80% in 2025—the highest point this year. For an official altseason, 75% of altcoins must outperform Bitcoin, and this figure points to increasing enthusiasm for alternative digital assets Crypto Markets Flash Altseason Signals as Bitcoin Loses Grip on Dominance [ 1 ]. At the same time, Bitcoin’s market share (BTC.D), which measures Bitcoin’s value as a portion of the entire crypto market, has formed a bearish flag breakdown on weekly charts, indicating persistent weakness and a possible shift of funds toward altcoins Crypto Markets Flash Altseason Signals as Bitcoin Loses Grip on Dominance [ 1 ].

Technical analysts in the crypto space emphasize the importance of these patterns. A bearish flag breakdown, usually seen after a consolidation phase, signals that Bitcoin is losing its edge to smaller-cap tokens. Trader Tardigrade, a respected analyst, pointed out that

.D’s drop below a three-year upward trendline—a key technical event—has often come before major surges in altcoins Crypto Markets Flash Altseason Signals as Bitcoin Loses Grip on Dominance [ 1 ]. Likewise, veteran trader Merlijn likened the current setup to the 2021 altseason, noting that Bitcoin dominance has entered a “Phase 4” breakdown, setting the stage for capital to move into and other alternative coins Bitcoin Dominance Plunge Sparks Talk of New Altcoin Cycle [ 3 ].

Looking back, history supports the likelihood of a cyclical transition. In the 2021 altseason, coins like

and experienced massive rallies, with Dogecoin soaring by 36,000% and Shiba Inu briefly overtaking Dogecoin in market cap. These cases highlight the dramatic returns possible during altcoin-led cycles. The current environment, featuring a drop in BTC.D and increased altcoin trading activity, resembles conditions seen before previous altseasons. For example, Ethereum (ETH) and (SOL) have outperformed Bitcoin, with ETH/BTC and SOL/BTC pairs gaining momentum as investors pursue higher-risk, higher-reward assets Crypto Markets Flash Altseason Signals as Bitcoin Loses Grip on Dominance [ 1 ].

Market watchers are also noting significant changes in capital movement. Ethereum’s 19.45% weekly rise to $3,800 and Solana’s jump above $200 signal increasing interest from both institutions and individual traders. XRP’s 21.4% climb to $3.52 further demonstrates the strength in mid-cap altcoins Capital Rotation as Bitcoin Dominance Falls to 60% [ 2 ]. Analysts link this momentum to factors like clearer regulations—such as new rules in the U.S. and EU—and institutional investments, including a $175 million Ethereum purchase by a major asset manager Capital Rotation as Bitcoin Dominance Falls to 60% [ 2 ]. These developments are lowering entry barriers for traditional investors and encouraging a broader, more diverse crypto market.

Still, there are short-term hurdles. Although the drop in BTC.D points to an ongoing altseason, some experts warn that the 60–61% support range could temporarily halt Bitcoin’s market share decline. Market analyst Crypto Candy mentioned that unless BTC.D falls decisively below this threshold, altcoins might find it hard to maintain upward momentum Bitcoin Dominance Plunge Sparks Talk of New Altcoin Cycle [ 3 ]. Moreover, volatility in coins like Ethereum and Solana—evidenced by an overbought Relative Strength Index (RSI) for ETH—raises the risk of short-term pullbacks Capital Rotation as Bitcoin Dominance Falls to 60% [ 2 ]. Nonetheless, the overall trend of capital shifting toward altcoins is strengthening, supported by on-chain data and rising volumes in altcoin trading pairs.

As the market adapts to these shifts, the emergence of a full-scale altseason will depend on continued Bitcoin weakness and ongoing participation from both institutional and retail investors in altcoins. With historical trends and technical signals aligning, the coming three to six months could bring substantial gains for Ethereum, Solana, and other altcoins, echoing the explosive growth seen in previous cycles. Investors should keep an eye on crucial technical markers and regulatory changes, while managing their exposure to high-growth assets with prudent risk strategies.