Altcoin Momentum Builds as Bitcoin Stalls Below $120K

Altcoins surged at the start of the week as institutional capital continued rotating beyond Bitcoin, driven by renewed interest in Ethereum, growing appetite for real-world asset (RWA) tokenization, and ongoing macro and legislative tailwinds.

Bitcoin (BTC) hovered near $118,800 during Monday’s Asian trading session, posting modest gains of 1% on the day and 2.6% for the week. But market attention shifted quickly to altcoins, with Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) leading the way.

Ethereum Outpaces Bitcoin as Flows Accelerate

Ethereum rose 3.7% to $3,793, notching a 25% weekly gain and hitting its highest price since early 2022. Analysts cite inflows into ETH-backed ETFs and treasury products as key drivers, alongside its growing importance in the RWA tokenization space.

“Ethereum is catching strong institutional demand and favorable structural tailwinds,” said Eugene Cheung, Chief Commercial Officer at OSL. “It remains the last of the majors to break its all-time high, and markets are betting it could happen soon.”

The ETH/BTC ratio rebounded to its best level in months — a sign that traders are positioning for Ethereum outperformance.

Broad-Based Altcoin Rally Gains Steam

The rally wasn’t limited to Ethereum. Other top altcoins posted sharp gains:

• XRP added 4.1% to trade at $3.55
• SOL jumped 6.6% to $189
• Cardano (ADA) and BNB both rose over 3%
• DOGE surged 9.6% to $0.2774, bringing its weekly gain to more than 33% — its strongest seven-day stretch in over a year

“Capital is rotating into altcoins as Bitcoin shows signs of consolidation below record levels,” said Enmanuel Cardozo, market analyst at Brickken. “We’re seeing the early signals of an altcoin cycle.”

Bitcoin’s dominance — the measure of BTC’s share of the total crypto market cap — has slipped from 66% in June to 61.75%, according to TradingView, further supporting that thesis.

RWA Narrative and Legislation Fuel Optimism

The altcoin rally is also benefiting from enthusiasm around real-world asset tokenization. With over $24 billion now locked in tokenized assets — including private credit, Treasuries, and real estate — the sector is drawing serious interest from traditional finance giants like BlackRock and JPMorgan.

“Tokenized assets are becoming a major pillar of the DeFi landscape,” said Cardozo.

Meanwhile, developments in U.S. legislation are adding to bullish sentiment. The GENIUS Act — aimed at regulating stablecoins and providing tax clarity for crypto — failed a procedural vote last week but remains under consideration in Congress.

Traders Watch for Further Rotation

Some analysts hesitate to declare the start of a full-fledged “altseason,” but the signs of a capital shift are mounting.

“Most TradFi players are already positioned in BTC,” said Augustine Fan, head of insights at SignalPlus. “We’re now seeing a natural risk-on rotation — ETH, RWAs, and high-beta altcoins are benefitting.”

If Bitcoin continues consolidating below $120K, altcoins — particularly those tied to institutional narratives — could lead the next breakout phase.

“Whether this marks the true beginning of an altcoin cycle or just a short-term rotation, the momentum is undeniable,” Cardozo said.