Crypto markets are showing a notable change in dynamics, marked by strong performance from major altcoins. Bitcoin's market share has weakened and is now closer to 59%. This development is accompanied by a rotation of capital towards high beta assets, reigniting discussions around a possible altcoin-led market phase.
In brief
- Bitcoin is trading around $89,644, but is underperforming against major altcoins as its dominance declines and risk appetite rises.
- XRP and Dogecoin lead the gains, with meme cryptocurrencies and mid-cap tokens performing strongly as trading activity shifts away from bitcoin.
- Ethereum surpasses $3,100, preserves key support levels after several months of weakness and shows improving near-term momentum.
- Listed companies stepped up their purchases of ETH in the third quarter, briefly pushing up the ETH/BTC ratio and putting further pressure on bitcoin's dominance.
Bitcoin Momentum Stagnates as Altcoin Activity Intensifies
Recent sessions suggest a gradual easing of bitcoin's dominance in the crypto market. After hovering around 60% for much of the year, this metric is now showing signs of decline. While prices have remained relatively stable, the relative performance of bitcoin remains lower than that of several large-cap tokens.
Bitcoin (BTC) trades around $89,644up around 1.7% over the last 24 hours. Despite this progress, momentum remains limited. Market sentiment remains negative, with the Fear and Greed Index sitting at 29. BTC is also trading below its 200-day simple moving average and is down around 7% year-over-year.
Conversely, altcoins are seeing widespread gains:
- XRP has increased by 6% over the last 24 hours, approaching the $2 threshold.
- Dogecoin surged 10.51% to reach $0.139establishing itself as the most successful cryptocurrency.
- Shiba Inu and other smaller cap tokens have also followed this bullish momentum.
- Ethereum gained 4.36%, trading around $3,114 after several months of consolidation.
Listed companies strengthen their ETH positions, driving the ETH/BTC ratio higher
Ethereum, in particular, is showing signs of regaining momentum after a long phase of underperformance. ETH closed up 17 of the last 30 daysor approximately 57% of the period. Price action is now holding above key support levels, boosting short-term trader confidence.
At the start of 2025, bitcoin dominance was at historically high levels. Subsequently, capital flows gradually shifted towards altcoins, driven by growing interest in Ethereum-centric treasury strategies. This movement then paused as attention focused on these companies.
Several publicly traded companies thus accelerated the accumulation of ETH during the third quarter, exceeding their purchases of bitcoin. This dynamic temporarily increased the ETH/BTC ratio. While it remains uncertain whether these signals will lead to a truly extended altcoin cycle, recent price action suggests that traders are increasingly positioning themselves beyond bitcoin.
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