(MENAFN- Crypto Breaking) As cryptocurrency markets navigate recent shifts, a crypto analyst suggests that the declining Bitcoin dominance could signal an upcoming altcoin season. With market volatility intensifying, traders are watching for hints of a broader trend reversal that might favor alternative digital assets, potentially reshaping the current dominance of Bitcoin.

• Bitcoin's dominance has decreased by over 5% in the past six months, suggesting a shift in market dynamics.
• Market commentators believe the current bearish trend in Bitcoin's dominance could herald an early altcoin season.
• Recent volatility in Bitcoin's price may have been influenced by larger financial institutions or market manipulation.
• Current altcoin market indicators remain subdued, with most tokens still closely tied to Bitcoin's performance.
• Experts predict future altcoin gains will be concentrated among established cryptocurrencies likely to receive ETF approvals.

The recent fluctuations in Bitcoin's market share have traders and analysts debating whether a broader altcoin rally is imminent. Crypto analyst Matthew Hyland highlights that Bitcoin's dominance chart remains bearish and has persisted in that trend for several weeks, which historically signals that altcoins might soon outperform Bitcoin.

“The downtrend is likely to continue. What we are seeing now is just a dead cat bounce in a downward trend,” Hyland explained via social media. He also suggested that recent Bitcoin volatility might be orchestrated by traditional finance giants aiming to influence market sentiment.

Bitcoin's dominance diminishes amid market uncertainty

Bitcoin's market share has declined by 5.13% over the past half-year, now sitting at approximately 59.90%, according to TradingView data. Despite recent rallies, Bitcoin slipped below the $100,000 mark on Nov. 4 for the first time in four months, fueling broader concerns about its near-term trajectory.

Bitcoin dominance has decreased by 5.05% over the past six months. Source: TradingView

Currently trading at about $102,090, Bitcoin's recent price action suggests that market focus might shift back to altcoins. Still, many market metrics indicate that Bitcoin remains central. The Altcoin Season Index from CoinMarketCap stands at 28 out of 100, indicating a market still predominantly driven by Bitcoin's movements.

Bitcoin is down 15.65% over the past 30 days. Source: CoinMarketCap

Though some analysts remain hopeful about a forthcoming altcoin season, prevailing indicators paint a picture of a market still heavily influenced by Bitcoin's performance. Despite recent optimism, market data shows Bitcoin has experienced a 15.65% decrease over the last month, underscoring ongoing volatility and cautious sentiment among traders.

Different dynamics for the next altcoin rally

While the last significant altcoin season was triggered shortly after Bitcoin hit an all-time high of $125,100 in early October, the subsequent market crash on Oct. 10 wiped out nearly $19 billion in leveraged positions, emphasizing the risks associated with bullish trading drives.

Some industry voices believe that future altcoin rallies may be less broad and more targeted. Maen Ftouni, CEO of CoinQuant, forecasts that cryptocurrencies with existing ETF approval or those likely to receive one will attract most of the capital during the next potential rally.

“Not every coin will see massive returns; liquidity will be concentrated into select projects, especially 'blue chip' cryptocurrencies,” Ftouni explained.

As the market awaits clearer signals, the focus remains on how institutional acceptance, regulatory developments, and macroeconomic factors could influence the evolving landscape of crypto regulation and investment in the digital economy.

Crypto Investing Risk Warning
Crypto assets are highly volatile. Your capital is at risk. Don't invest unless you're prepared to lose all the money you invest.

MENAFN09112025008006017065ID1110315640