Bitcoin Dominance Dips as Altcoins Gain Momentum, Signals Point to June Rally
Bitcoin’s market dominance has shown signs of weakening this May, fueling expectations of an impending altcoin season, says Joao Wedson, CEO of crypto analytics firm Alphractal.
Data from TradingView reveals Bitcoin’s dominance fell from approximately 65% to 62% in just one week, breaking a steady five-month upward trend. Meanwhile, the total cryptocurrency market capitalization expanded from $2.90 trillion to $3.24 trillion, indicating capital is flowing into alternative cryptocurrencies.
Wedson forecasts that June could see a full-fledged altcoin rally. His proprietary Altcoin Season Index, which tracks 57 select altcoins, indicates 37 have outperformed Bitcoin over the last two months.
“Even if Bitcoin prices pull back in the near term, altcoins have largely stabilized and are poised for growth,” Wedson explained on X. “We anticipate that some of Bitcoin’s $2 trillion market cap will redistribute into altcoins, so traders should monitor altcoin-Bitcoin pairs like ETH/BTC for early signs.”
Despite this optimism, broader market metrics still suggest that Bitcoin’s dominance keeps the crypto bull run largely centered on the leading coin. For example, CoinMarketCap’s altcoin index, which measures the top 100 altcoins, remains stuck near 27, a level typically associated with “bitcoin season.”
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