Altcoin Season May Be Underway as Bitcoin (BTC) Dominance Slips

Over the past month, Bitcoin (BTC) has posted significant gains, with traders eyeing a break above $100,000 before the end of the year.

Bitcoin (BTC) price action showed signs of slowing down on 26th November, as the world’s largest cryptocurrency posted a 1.4% drop in 24 hours to trade at $94,198. This drop came after BTC rose to highs of $95,400 on 25th November.

However, the recent drop in BTC price was not enough to stop a potential altcoin rally, as the Altcoin Season Index surged to multi-month highs.

At press time, the altcoin season index surged to 53, marking its highest level since April 2024. A rise in this index shows that altcoins are performing better than Bitcoin. It could also suggest the start of a major rally in the altcoin market.

However, the beginning of an altcoin season will only be confirmed if this index rises above 75. If it rises to this level, it will confirm that other cryptos are delivering better returns compared to Bitcoin.

Bitcoin dominance slips

The surge in the altcoin season index has also been accompanied by a slight drop in Bitcoin’s dominance. In just one month, BTC’s market cap dominance has declined from 60% to around 56%, suggesting that altcoins were taking up Bitcoin’s market share.

Meanwhile, the ETH/BTC ratio has also bounced from range lows as Ethereum gains interest. Institutions also appear to be favoring Ethereum.

Data from SoSoValue shows that on 25th November, spot Ethereum exchange-traded funds (ETFs) had positive inflows of $2.8M, while inflows to Bitcoin ETFs came in negative at $438M.

However, ETH price is yet to post a strong rebound, given that it traded at $3,273 at press time after a 3.6% drop. But over the past seven days, ETH has gained by around 6%.

Cardano & XRP lead altcoin rally

While Ethereum is showing signs of strength, the two altcoins currently outperforming the other top-ten largest cryptocurrencies by market capitalization are Ripple’s XRP and Cardano (ADA).

ADA has gained 4% in the last seven days, while XRP has gained 7%. These coins were also among the top performers in November.

Top meme coins, including Dogecoin (DOGE) and Shiba Inu (SHIB) had also posted strong gains over the past month before the recent pullback.