Altcoins Poised to Rally as Bitcoin’s Grip on Market Loosens, Alphractal CEO Says

A notable decline in Bitcoin’s (BTC) dominance rate this month is signaling a potential shift in market dynamics, with altcoins ready to take the spotlight, according to Joao Wedson, CEO of crypto analytics platform Alphractal.

BTC’s share of the overall crypto market dropped from about 65% to 62% in just one week, marking the first meaningful retreat after a five-month climb. During the same period, the total crypto market cap rose from $2.90 trillion to $3.24 trillion — a sign that funds may be rotating into altcoins.

Wedson believes this marks the early stages of a broader altcoin rally. His firm’s in-house Altcoin Season Index — which monitors 57 altcoins — found that 37 have outperformed Bitcoin in the past 60 days.

“The shift is already happening. Even if Bitcoin experiences downside pressure, many altcoins have likely found their floors and could hold steady,” Wedson said in a detailed post on X. “We expect capital to rotate out of Bitcoin and into high-potential altcoins, especially as BTC dominance continues to erode.”

He advised traders to closely watch BTC trading pairs — like ETH/BTC and COTI/BTC — to identify relative strength as the trend develops.

Still, some indicators suggest caution. CoinMarketCap’s broader altcoin index — which tracks the top 100 non-BTC assets — remains near 27, a reading that typically indicates that it is still “bitcoin season.”