Altseason Incoming? Altcoin Surge & Falling USDT Dominance
Altseason on the Horizon?
The cryptocurrency market is exhibiting strong signs of an approaching altseason—a period where alternative cryptocurrencies (altcoins) significantly outperform Bitcoin (BTC). This potential shift is supported by several key indicators, including rising altcoin market capitalization and declining Bitcoin and USDT dominance.
Rising Altcoin Market Cap
The TOTAL2 chart (total market capitalization excluding Bitcoin) has decisively broken above a downtrend line established since January 2025. This breakout, coupled with a bullish break of structure (BOS) on the daily chart, suggests a potential uptrend. A move above the $1.25 trillion resistance level could solidify this trend. This signifies a significant capital shift from Bitcoin to altcoins.
Falling Bitcoin Dominance
Bitcoin dominance (BTC.D) has fallen 4% in the past six days—its steepest drop since November 2024. This decline signals capital flowing from Bitcoin into altcoins, boosting their market share and driving price increases. Analyst Michael Van Poppe noted a bearish divergence with declining volume, suggesting a peak in Bitcoin dominance and the potential end of the altcoin bear market.
USDT Dominance Dips to New Lows
Tether (USDT) dominance has fallen to its lowest level since early February, reaching 4.59% on May 13. Further decline towards 3.90% support is possible, potentially reaching 2021 lows—levels typically seen during altseasons. This decrease indicates capital is moving into other assets, including Bitcoin and altcoins.
This is evidenced by recent performance: Ether (ETH), XRP, and Solana (SOL) gained 44.3%, 20.6%, and 22% respectively, exceeding Bitcoin's 10% rise.
Early Stage Altcoin Recovery?
Analyst ZERO IKA observed many altcoins forming higher timeframe breaks of structure above their February and March highs. While this is positive, most altcoins remain 70% to 90% below their all-time highs, suggesting an early stage of recovery.
Conclusion
The confluence of weakening stablecoin and Bitcoin dominance, coupled with a surging altcoin market cap, strongly suggests a potential altseason. However, it's crucial to remember that the cryptocurrency market is inherently volatile. This information is for educational purposes only and not financial advice. Conduct thorough research before making any investment decisions.
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