Increasingly, signs point to a tipping point in the crypto market. Altcoins are posting significant gains, while the dominance of Bitcoin and the stablecoin Tether is declining. All of this could signal the start of an altseason.
Bitcoin’s dominance has fallen by 4% over the past six days, marking the biggest decline since November 2024. Historically, such a decline is often accompanied by strength in altcoins. It appears that investors are seeking greater returns and are currently turning to riskier investments within the crypto market that are still off their previous peaks.
The chart showing Bitcoin’s dominance shows a clear bearish divergence. This could mean that we may be approaching the end of the altcoin bear market.
Stablecoins like Tether are also showing signs of accelerating capital shifting. USDT dominance dropped to 13% on May 4,59, its lowest level since February. Technical patterns suggest further declines towards 3,90% are possible. A break below that level could signal a strong rotation towards other cryptocurrencies.
Over the past week, altcoins like Ethereum, XRP and Solana performed much better than Bitcoin. These altcoins rose by 44,3%, 20,6% and 22% respectively, while Bitcoin gained only 10%.
Many altcoins have already broken out of their February and March highs, but most prices are still 70% to 90% below their historical peaks. This points to an early recovery phase with potential for further growth.
If this trend continues, May 2025 could mark the beginning of a broader altseason. The combination of Bitcoin and Tether’s declining dominance, altcoin market caps rising, and growing investor optimism is creating an environment where altcoins could take center stage. And who knows, maybe this will be the year altcoins finally turn things around.
What are the key signs of a possible altseason?
The decline in Bitcoin dominance and strong price increases of altcoins indicate growing interest in riskier investments within the crypto market.
Why is the dominance of stablecoins relevant?
A decline in the dominance of stablecoins like USDT could indicate that capital is shifting to other cryptocurrencies, which is a sign of confidence in the broader market.
What can we expect in the coming months?
If the current trend continues, we may see greater growth in altcoins, which could mark the beginning of a new phase in the crypto market.