Falling Bitcoin dominance signals possible altcoin season
Altcoins show growth
Over the past week (November 16-23), Bitcoin’s dominance in the cryptocurrency market dropped by 3.7%. During this period, several altcoins outperformed the leading digital asset in terms of growth dynamics.
Crypto analyst MegaWhale Crypto highlighted this trend, noting strong weekly performances from Stellar (XLM), Ripple (XRP), VeChain (VET), and Polkadot (DOT).
The trader shared a chart comparing the current market with the start of the altcoin season during Bitcoin’s 2020 cycle, captioning it: "Altcoin season likely starts today."
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Temporary rise in Bitcoin dominance
On November 21, Bitcoin dominance reached 62%, marking a new multi-year high. At the same time, BTC’s price nearly hit $100,000, significantly boosting its market capitalization and reinforcing its position as the market leader.
Institutional investors, such as BlackRock and Fidelity, continued to accumulate Bitcoin reserves, while new U.S. President Donald Trump’s promises to simplify cryptocurrency regulations bolstered market confidence.
However, within 48 hours of this peak, Bitcoin dominance dropped to 59%. This decline was driven by the rapid rise of altcoins, which began attracting capital following BTC’s surge. Many altcoins, including smaller-cap tokens, experienced substantial growth, signaling a potential start to an altcoin season. Despite the decrease in Bitcoin's market share, its recent rally acted as a catalyst for broader market activity.
Meanwhile, the market’s volatility led to liquidations totaling $467 million, impacting 164,700 traders.
