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After a long desert crossing, altcoins are finally showing signs of awakening. Ethereum has just surged by more than 32% in one week, rekindling hope for a true “altseason.” While Bitcoin dominance reaches 65% of the total market capitalization, many analysts see it as a harbinger of an imminent shift.
In brief
- Bitcoin dominance has reached 65%, its highest level since 2021, a threshold considered a major resistance by analysts.
- Ethereum surged 32% in one week, significantly outperforming Bitcoin.
- Quantitative easing measures in China played a catalytic role in this recent rally.
- Historically, Bitcoin dominance at 65% often precedes capital rotation towards altcoins.
Signals Announcing an Imminent Altcoins Season
Bitcoin dominance has continuously grown over the past three years, rising from 39% to nearly 65% today. This level represents a major technical resistance which, historically, has systematically preceded significant market reversals.
According to analyst Darky, this 65% threshold could mark the peak for Bitcoin dominance, signaling an imminent correction.
BTC dominance is about to drop sharply. Fill your bags with altcoins.
This analysis is reinforced by the identification of an ascending wedge pattern on the dominance chart, a chart pattern generally heralding a bearish reversal.
This technical outlook resonates with recent macroeconomic developments. Michael van de Poppe, a well-known trader and analyst, highlights China’s determining role in the current dynamic.
The Chinese central bank recently lowered its interest rates to a historic floor of 1.3%, while reducing the reserve requirements for commercial banks.
These quantitative easing measures injected significant liquidity into global financial markets, causing an appreciation of the yuan against the US dollar.
Moreover, according to Van de Poppe, this monetary relationship directly influences cryptocurrencies:
When the yuan appreciates, the US dollar weakens, which means a positive economic cycle and therefore strength in altcoin markets.
Diverging Expert Perspectives for the Coming Months
While some experts see these signals as the start of an explosive altseason, others remain more cautious.
Thomas Fahrer, co-founder of Apollo, points out that “this cycle is different, because when BlackRock and Saylor buy Bitcoin, they merely hold it and do not trade it against altcoins.”
Nic, co-founder of Coinbase, offers a more nuanced perspective. For him, a true altcoin season requires several conditions: Bitcoin dominance below 54%, official monetary easing from the Fed, and Bitcoin stable at historic highs while capital flows into altcoins.
The Kaiko Research report also suggests that 2025 might favor targeted investments in certain altcoins rather than a generalized rally.
The first cryptos to benefit would likely be the established “dinosaurs” such as Ethereum, XRP, Cardano, Chainlink, BNB, and Litecoin.
This convergence of technical, macroeconomic, and on-chain signals suggests that a major turning point is approaching for the crypto market. The historic resistance of Bitcoin dominance at 65% could well be the last bastion before a spectacular rebalancing in favor of altcoins.
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Passionné par le Bitcoin, j’aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l’outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
